Posted on: 16th Apr, 2011 06:13 am
I am doing a cash out of my primary residence and these are the fees that my mortgage broker is charging. Do they seem higher than average?
80% LTV cash out of my paid off primary residence
Conventional, 30 year fixed
I have excellent credit-A
Date-04/2011
loan amount- 190K
Interest rate is 5.125%
Loan origination fee- $1900
Underwriting fee-$1315
loan discount fee-$1900
lenders title insurance- 1100
...or if I don't want to pay the discount fee, my rate would be 5.375%
If I don't want to pay both the discount and origination fee, my rate would be 5.625%
The mortgage broker said that the underwriting fee combined all of the fees. I thought that the rate seemed a little high since I have great credit. Is he making extra money off the higher rate?
80% LTV cash out of my paid off primary residence
Conventional, 30 year fixed
I have excellent credit-A
Date-04/2011
loan amount- 190K
Interest rate is 5.125%
Loan origination fee- $1900
Underwriting fee-$1315
loan discount fee-$1900
lenders title insurance- 1100
...or if I don't want to pay the discount fee, my rate would be 5.375%
If I don't want to pay both the discount and origination fee, my rate would be 5.625%
The mortgage broker said that the underwriting fee combined all of the fees. I thought that the rate seemed a little high since I have great credit. Is he making extra money off the higher rate?
What state are you in, what's the value of the property and do you know what your actual credit scores are?
When you said the origination fee combined all of the fees I take it you mean 3rd party fees such as appraisal, credit report, flood cert, tax service. What about settlement/closing fee which I didn't see listed?
Best if you could provide a more detailed breakdown of these fees which the broker should have supplied you with.
When you said the origination fee combined all of the fees I take it you mean 3rd party fees such as appraisal, credit report, flood cert, tax service. What about settlement/closing fee which I didn't see listed?
Best if you could provide a more detailed breakdown of these fees which the broker should have supplied you with.
I'm in AZ, the property value is 240K, my credit score is 799 and spouse is 703.
No, this does not include third party fees. The underwriting fee includes processing fees.
No, this does not include third party fees. The underwriting fee includes processing fees.
Based on the information you provided, the quote you got is not competitive as you should be able to find a 30 year fixed rate 5.125% loan that would cover all lender fees and all or most of the 3rd party fees.
Also, another thing you need to consider is your loan to value ($190,000 loan divided by $240,000 estimated value) is very close to 80% and you need 80% or higher to avoid paying for mortgage insurance. Since many appraisals are coming in lower than expected, there is a good chance you may need to come up with extra funds to paydown the loan balance to reach the 80% number.
Also, another thing you need to consider is your loan to value ($190,000 loan divided by $240,000 estimated value) is very close to 80% and you need 80% or higher to avoid paying for mortgage insurance. Since many appraisals are coming in lower than expected, there is a good chance you may need to come up with extra funds to paydown the loan balance to reach the 80% number.