Question
Closing costs on refinance?
I've made an agreement with the broker that I will take (if it gets there) 4.75% if the rebate is 0.50. It'll be about a $290K refi in Northern California (Sacramento area), excellent credit. On the GFE, I'm seeing mortgage broker fee: $395; processing fee: $400; underwriting fee: $795. There's no orig or disc points. Do these seem high? I've read that a typical underwriting fee is $500. Since the broker gets 0.50% (or $1450) for the loan, should I even pay a broker fee? Seems like I'm paying twice when the broker said he'd only charge 0.50 if I take the loan with him. I figure the processing fee is processing the docs. Total closing costs with all fees on the GFE is $3018.
1 month ago - 2 answers
Best Answer
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The fees all seem pretty standard. You have an EXCELLENT rate and your broker is only getting a half point in rebate compared to several years ago where brokers would get 3+ points in rebate AND charge at least a 1% origination fee!!! The average processing fee I've seen is $495. As to the mortgage brokers fee of $395, would you rather he charge you a half point in origination instead? It sounds like you have a great loan with a great interest rate.....are you really going to complain about a few hundred dollars??? Consider it a cost of doing business. FYI - Don't forget about the Title and Escrow fees...
by Michael
1 month ago
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Other Answers
It does seem high but I don't live in CA. Have you checked with other lenders? If you haven't I would regardless of what this guy is offering you. Are you paying points with that rebate or .5? Paying points are called all sorts of things ie origination fee.
by pagodaboy2001- 1 month ago