what percentage is normal for the broker to take on the equity withdrawn on a residential refinance?

Question

I am taking 25k in equity my loan broker's fee is $6,600 my fica score 800 with one and 792 with the other.

Answer 1

A normal percentage does not apply here because the loan is not a normal loan amount. On average the loan officer will normally charge1-2 % of the loan amount for the broker fee. As you know in addition to the brokers fees there is title, escrow, lender fees, processing and other stuff that must be paid to 3rd parties that the broker contracts to complete the requirements by the lender. In your case the lender may require all the same things as if it was a normal size loan. The loan amount you are asking for can usually be obtained thru the mortgage company that is already holding your 1st and who will normally charge only min costs. If you can qualify for a loan with a mortgage broker you can most likely walk into any bank and get the loan you want with minimal costs. As a loan broker myself, I will not do a loan as small as yours because it is not profitable. Therefore my answer to you is, you do not need a loan broker for this type of loan. Go direct to the bank or the mortgage company that gave you your original loan.

Answer 2

Don't do it! Go find another mortgage company. $6,600 is a ridiculous amount for a loan that small, and it may even be illegal--there are high-cost loan tests that must be met to avoid predatory lending.

For a second lien, your fees should be less than $1,200.

Rick Lanicek
http:www.primelendingonline.com

Answer 3

if you taking equity line of credit- this is to much , but if you refinance your house and take 25K cash out, this is the fee they charge you and of course you can try and negotiate with them.

Answer 4

You're getting screwed. You should slap your broker and then report them to your state banking department.

Answer 5

email me I have programs with no closing costs.

I am with a national lender.

David