Posted on: 22nd May, 2009 08:07 am
Can lender charge any thing as origination fee?
Is there some guidelines to it?
Is there some guidelines to it?
yes, a lender can charge origination fee. it is also called a point. you are going to find that points are charged on just about every loan out there - what that fee is called may vary from one place to the other, but origination fee is pretty much the standard terminology.
i have never heard of "guidelines" to it. that doesn't mean there aren't any, but i have to be very skeptical that there might exist guidelines on a governmental level, which is what i suspect you're driving at.
i have never heard of "guidelines" to it. that doesn't mean there aren't any, but i have to be very skeptical that there might exist guidelines on a governmental level, which is what i suspect you're driving at.
This is the fee charged to establish your loan. The exact use can be unclear, but fee utimately compensates your lender or broker for putting you loan in place.
A typical home buyers can expect to pay between 0.5% to 1%
A typical home buyers can expect to pay between 0.5% to 1%
Yes definately lender can charge obligation fee.
There is no rule that the origination must be 1%, and may be anything that the lender wishes to charge. I have seen .5%, 1%, 2%, and I've seen fixed dollar amounts that have no attachment to the loan amount.
The origination fee is one form of compensation the loan provider makes for obtaining a loan. I have seen many lenders make the claim that they don't charge an origination fee, but don't mention that they do charge a discount. Discount is a flexible term as well, since I've seen it used to buy down a rate, but also as pure revenue. It's the item that appears on the line following the origination fee.
There is no rule that the origination must be 1%, and may be anything that the lender wishes to charge. I have seen .5%, 1%, 2%, and I've seen fixed dollar amounts that have no attachment to the loan amount.
The origination fee is one form of compensation the loan provider makes for obtaining a loan. I have seen many lenders make the claim that they don't charge an origination fee, but don't mention that they do charge a discount. Discount is a flexible term as well, since I've seen it used to buy down a rate, but also as pure revenue. It's the item that appears on the line following the origination fee.
perhaps i was unclear. a "point" is one per cent. that's the typical conversation that is held between borrowers and lenders - "how many points" are involved.
yes it is true that origination fee(s) can be fewer than 1% - your interest rate will be higher in that instance, however.
yes it is true that origination fee(s) can be fewer than 1% - your interest rate will be higher in that instance, however.