Posted on: 27th Jun, 2009 11:33 pm
What is a reasonable percentage rate for a broker to ask to be paid for originating a mortgage?
you can be charged between 0.5% to 1%
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I would love to assist you. Email me back, and let's discuss!
MSmith@PrecisionFundingUSA.com
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I am on line now!
As an origination fee for a purchase loan, up to 1% is acceptable. Anything over that is usually excessive and if you called around you would have no problem getting a better deal. I know that I have NEVER charged an origination fee of a full 1% on a traditional loan. Purchase or refi. So even paying 1% is usually too much! The exception would be certain government backed programs (i.e. CalHFA) where it could be as much as 1.5%. However in those programs, the 1.5% is usually worth it.
In addition to the origination fee, you want to take a look at all the other fees as well. Many fees that might look like a legitimate third party fee could simply be a junk fee. Sometimes it hard to tell. You also should take at the entire rate and fee structure as well. There's no point in paying too much in fees but it's even worse if you're paying too much in fees and not getting a great interest rate/loan program.
If you'd like me to take a look at a Good Faith Estimate for you, or see what I can do for you, just let me know. I'll give you an honest assessment of your broker's offer based on today's market pricing.
In addition to the origination fee, you want to take a look at all the other fees as well. Many fees that might look like a legitimate third party fee could simply be a junk fee. Sometimes it hard to tell. You also should take at the entire rate and fee structure as well. There's no point in paying too much in fees but it's even worse if you're paying too much in fees and not getting a great interest rate/loan program.
If you'd like me to take a look at a Good Faith Estimate for you, or see what I can do for you, just let me know. I'll give you an honest assessment of your broker's offer based on today's market pricing.