Mortgage rates and lender fees

[Sundance Kid]

Not really sure, what my question is, BUT, I've been on the Web, looking for mortgage lenders. I've noticed, that the fees charged by these lenders, can range anywhere from a few hundred bucks, to several thousands!

I realize, they have to charge something, for processing all the paperwork but, Geez, one company wants 400.00; another, wants 10,000, for basically the same rate of interest. Why, is that?

[blanston]

The low cost offers are lying. The high cost is subprime. Why don't you go to a someone local that has provided good services for someone you know instead of shopping all the bogus offers on the internet?

[LOL!]

You've got to compare real offers with your situation and credit score. We have had 3 home loans (one original, 2 refinances). The first two were from a local broker. The last from online with e-loan. The latter was the cheapest and superb service ... better than the superb service of the local broker. Moral of post: not all internet offers are bogus, nor are all local reputable brokers the cheapest.

[Martha]

What are the fees for that they are reporting? Origination fees? Usually a percentage of the mortgage if they are charged. Documentations fees? Closing fees? Estimated fees for appraisal and title insurance?

I just went to the eLoan site and was surprised at their low fees for a first mortgage fixed rate loan. They estimate appraisal, title, closing and recording costs and unless you want to buy down the rate by paying points, eLoan doesn't have any of its own fees.

[Rich_by_the_Bay]

I think it can be tricky. Mtg brokers get their fees from the lender usually, according to my realtor-DW. Like an independent insurance agent, they are more likely to scour the available lenders for the best deal, but of course they are prone to being "educated" by those who pay them the best commission.

Our experience has not been impressive. We found one last time, but as part of our "due" diligence we found a better deal at Wash Mutual. When we called the broker to tell her we found a better deal, she offered to lower some of the various fees (or course before that, these fees were "out of her control, required by the lender"). Watch your step and compare.

Maybe eLoan or another site can do better.

[tryan]

Before I FIRE'd last year I lined up a couple HELOCs with Banknorth. They said only the appraisal fee need be paid for an investment property HELOC. Sure enough, only the appraisal fee ($250) was paid at the closing.

[brewer12345]

The mortgage industry is rife with sleaze and is about as opaque as any consumer-oroented industry I can think of. Either you find a mortgage broker you trust (good luck), or you deal with some of the few players that have decided to put their cards on the table and give you a firm quote (no "good faith estimate"). That I know of, E-loan, Etrade bank and ABN-AMRO do this, and I think ING does it also. I refi'd with Etrade in 2003 and got what I consider to be a good and fair deal. But E-loan might be cheaper. I would shop all of these guys to see what you are offered.

[Nords]

Quote:

Originally Posted by brewer12345 The mortgage industry is rife with sleaze and is about as opaque as any consumer-oroented industry I can think of.*

We've shopped mortgage loans for over 20 years and we've always come back to our credit union.

Lower interest rates, fewer PMI restrictions, and way lower financing fees. Sometimes the home's in a database and doesn't even require a $400 appraisal. If you're required to have an escrow account then you'll probably actually earn some interest on your deposits.

We've shopped around on title companies, too. It helps to tell TC1 that TC2 is only charging $1400 instead of $1850 or that you're planning to buy several rental properties over the next few years. When we've refinanced we've obtained similar savings by asking them to re-issue the current title insurance policy instead of starting from scratch.

[brewer12345]

Quote:

Originally Posted by Nords We've shopped around on title companies, too.* It helps to tell TC1 that TC2 is only charging $1400 instead of $1850 or that you're planning to buy several rental properties over the next few years.* When we've refinanced we've obtained similar savings by asking them to re-issue the current title insurance policy instead of starting from scratch.*

This is heavily dependent on state law/regulations. For example, in NJ, title insurance rates are fixed by statute, so there is no competition by price.