Posted on: 13th Mar, 2009 05:54 am
i trying do understand what will my loan orgination fee be based on i'm doing a refi and my payoff was approx 133,000 on the orginal loan the new gfe is showing 1401 loan org fee
Hi Guest,
An origination fee is charged by a lender for processing your loan and it is charged as a percentage (known as points) of the loan amount. The points the lenders charge vary from one lender to another and it is based on market conditions and the interest rate they are charging for the loan.
An origination fee is charged by a lender for processing your loan and it is charged as a percentage (known as points) of the loan amount. The points the lenders charge vary from one lender to another and it is based on market conditions and the interest rate they are charging for the loan.
well, guest, since an origination fee is 1% of the loan amount, that tells me that your new loan amount is $140,100. that means you're likely seeing your closing costs rolled into the new loan, which allows you to not have to bring cash to closing. if you've got the cash to pay for your costs, and desire to do that, you'll save over the long haul instead of having to borrow that money.
1% is very reasonable from a fee standpoint. Hopefully you are getting a great rate to go along with it!
Best of luck!
Best of luck!