Posted on: 07th Jul, 2011 07:47 pm
Looking to refi current mortgage to 15yr 3.75% No cash out
Credit score 767. The fees i don't understand or know if they are high are:
processing fee-645 Is this the application fee or assumption fee?
Underwriting fee-735
Can these fees be negotiated before closing? Do mortgage lenders ever lower their fees?
Credit score 767. The fees i don't understand or know if they are high are:
processing fee-645 Is this the application fee or assumption fee?
Underwriting fee-735
Can these fees be negotiated before closing? Do mortgage lenders ever lower their fees?
Welcome jib,
As far as I know, processing fee means your application fees. You can negotiate the closing fees. It will be the lender's discretion whether or not he will lower your closing fees.
As far as I know, processing fee means your application fees. You can negotiate the closing fees. It will be the lender's discretion whether or not he will lower your closing fees.
Every lender is going to have some fees. More important than the fees, and interest rate, is the APR, or the amount financed with the closing costs. If your rate and APR are close, then the loan is cheaper over the course of the loan, then if the rate and APR have a higher spread between the two.
I personally would forget comparing APRs and just stick with the actual fees you are being quoted. The fees you need to be concerned with are first and foremost lender related fees (could be called and include orignation fee, processing fee, administration fee, underwriting fee, application fee, etc.). These are fees the lender/mortgage broker charge and control. Depending on what they are making on the loan, these fees may be negotiable and many people just compare lender related fees when making their comparisons.
Then there are 3rd party fees the lender charges you for but are paid to other service providers that they select. This can include credit reports, flood certification, tax service fees, appraisals, etc. Generally these will typically be about the same no matter what lender you choose but some lenders may include them in their quotes as being part of their lender fees while others may list them separately, especially items such as credit reports, tax service and flood certificate fees. So you may want to include 3rd party fees such as these into your comparison.
Next you have title insurance and related fees and closing/settlement costs. These can vary greatly from one lender to another and you should comparison shop these fees with the providers the lender uses and quotes. Depending on the loan amount and state you reside this could save you hundreds of dollars by doing so.
Bottom line don't be concerned what the lender calls their fees. You just need to know how to correctly compare the quotes you get and then make sure what is being quoted is accurate before proceeding ahead.
Then there are 3rd party fees the lender charges you for but are paid to other service providers that they select. This can include credit reports, flood certification, tax service fees, appraisals, etc. Generally these will typically be about the same no matter what lender you choose but some lenders may include them in their quotes as being part of their lender fees while others may list them separately, especially items such as credit reports, tax service and flood certificate fees. So you may want to include 3rd party fees such as these into your comparison.
Next you have title insurance and related fees and closing/settlement costs. These can vary greatly from one lender to another and you should comparison shop these fees with the providers the lender uses and quotes. Depending on the loan amount and state you reside this could save you hundreds of dollars by doing so.
Bottom line don't be concerned what the lender calls their fees. You just need to know how to correctly compare the quotes you get and then make sure what is being quoted is accurate before proceeding ahead.
The mortgage co with the fees I stated above ended up discounting me 267. I shopped around & am using my own title co than the 1 they wanted to use so I'm saving a few hundred their. I compared this mortgage co with these fees @ interest rate of 3.75 to another mortgage co with only app fee of 600 (which is less than my orig mortgage co) but rate was 3.87. When I did the math, the extra amt it's going to cost me each mo for the higher rate actually comes out to more than the higher fees up front. I'm paying the fees, not financing them. So I figure even if their underwriting fee & processing fee are higher, the lower interest rate makes up for it
Based on what underwriters get paid, that's a terribly exorbitant fee in my opinion. Most lenders will charge you whatever the market will bear, and discounts might come into play once they get wind of your shopping around (particularly if their fees are more than the average anyway).
