There's so many fees and I don't want to get ripped off...like broker fee, processing fee, lender fee, escrow fee, title insurance, recording fees, ...etc. Closing costs are coming to almost $3500! Does anyone know what to look out for? Thank you
2007-01-09 07:35:21 · 7 answers · asked by mrsleslie_lady 3 in Business & Finance ➔ Renting & Real Estate
$3500 is fairly cheap in my opinion. The only thing I would all to the others is look at the origination fee, mortgage broker fee, and discount fee. Many times the guys giving the rest of us a bad name put money or points in all 3 areas to confuse the customer when in fact it is all going to the same place- their pocket. The exception being if you are truly getting a discounted rate- which is highly doubtful.
Everything you listed in your question is standard and it all has to be paid- most does not go to the loan officer but to other entities involved in the process.
I'm curious what rate and terms you're getting onthe loan and the purpose of the loan as well. Some people get so involved in the fees they don't check the rate to see if it is good or not.
I'd be happy to check over your GFE and let you know if it looks fair or where you might want to negotiate a little.
2007-01-09 08:27:39 · answer #1 · answered by flamingojohn 4 · 0⤊ 0⤋
There reason why the fees are broken down like that is because they get paid to different compaines(escrow, lender, and broker), the fee that mortgage company is making is under loan origination and mortgage broker fee. Also be sure to look for premium yeild spread paid to the broker from the lender. In some states like CA by law they have to disclose if they are getting paid any additional compensation for doing your lown from the lender. If they're making a lot you should try to ask for a discount on your mortgage broker fee and origination.
2007-01-09 15:53:04 · answer #2 · answered by HBSL621 3 · 0⤊ 0⤋
Broker fee - compensation for your broker
Processing fee - fee paid to the loan processor - the person who collects your documents for income, assets, etc. and packages the loan file for the underwriter.
Lender fee - self-explanatory.
Escrow fee - fee charged to manage your tax and insurance escrow account.
Title insurance - insurance paid to protect lender in the event there's an issue with clear title after closing.
Recording fees - courthouse fee to literally "record" your new loan at the county courthouse.
These are all pretty common fees. I would be interested to see an itemized breakdown of the fees...
2007-01-09 15:59:33 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The larger your loan, typically, the higher the closing costs. Also, the costs vary from state to state. Some state costs are very low and others are very high (Florida).
Also, most lenders can offer you a loan (with a higher rate) than covers all your costs (not taxes). It doesn't hurt to ask.
Finally, you can always go to lendingtree.com. After you enter your info, you will recieve 3 or 4 complete offers that include rates and costs. This is a great way to ensure you are getting a good deal.
2007-01-09 16:33:18 · answer #4 · answered by MR MONEY 3 · 0⤊ 0⤋
The loan fees all depend on the loan amount. $3500 seems like a decent amount, unless you're talking about a small loan like $50,000.
If you can save $300 a month by refinancing, you'll recover the loan fees in a year. You just have to figure out if it's worth it to you...but like I said, it doesn't sound like the fees are too high.
2007-01-09 17:06:11 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Your closing costs sound about right. try checking out several of the mortgage sites like Countrywide or googling real estate fees.
2007-01-09 15:45:43 · answer #6 · answered by Enchanted 7 · 0⤊ 0⤋
in mine they charged me a fedex fee when there had been no fedexing of any documents. i made them take it off before i would sign. get an experienced person to go with you.
2007-01-09 15:39:14 · answer #7 · answered by BonesofaTeacher 7 · 0⤊ 0⤋