Negotiable Mortgage Fees

The only hard costs mortgage brokers have are their legal fees and appraisal costs. Prior to signing a commitment agreement ask them to put ALL of their costs in writing and then have a discussion with them.

Remember mortgage brokers usually get paid not only by you but also by the underlying bank that underwrites the loan. Negotiate hard as the banks are hungry to write loans these days and if the mortgage broker is going to profit make it be at the expense of the bank not you.

Just how tight the mortgage market is is evidenced in the below article in which mortgage companies are aggressively pursuing brokers who can deliver mortgages:

http://www.therealdeal.net/issues/FEBRUARY_2007/1170197372.php

Looking for a million dollar loan but still haggling over a couple of hundred bucks? And people wonder why their deals dont go through. Cant wait to hear the story in a few months about how you went to "joe schmoe no fee super discount mortgage banker" and your closing was four months late. Maybe you'll be invited to the next congressional hearing on the mortgage industry and everybody can hear your sob story about how you were trying to buy a million dollar condo but couldn't pay an application fee.

ahahahaha, that's funny #4. You must have thought all these Manhattan condo buyers were super savvy financial professionals who figured out there is a relationship between price and service. They only believe that on Wall Street when they are trying to screw over the rest of America.

While #3 is a bit grumpy, I have to agree. Go with the most reputable broker and don't haggle. No, I'm not a mortgage broker, but I just used one and they really came through. Don't underestimate their ability to move quickly, especially around appraisals, if you push them. .

Defending mortgage brokers #3 and #4? What has this world and board come too?

C'mon #3, be fair....... even though the money may be coming out of the mortgage broker's pocket, I'm sure #1 would have donated the savings to charity.

OP here. #3 thanks for your totally worthless comments that make no sense. It is exactly because I AM taking out a Million dollar mortgage that I don't think I should pay a bunch of bullshit fees. The broker will make plent on the margin and I don't feel like throwing another few thousand his way on "processing fees" that aren't necessary. Being nickeled and dimed at this level is ridiculous when there are a million desperate brokers out there looking for this kind of business.

And by the way, asswipe, my deal has already gone through and this is my 3rd $2M+ condo purchase.

If this is your third deal #8 you should know processing and underwriting fees dont run into the thousands. The broker fees are for the nickel and diming customers who like to shop every other broker in town and leave brokerages spinning their wheels on dead end deals that will never go through (because customers jump ship from one broker to another or the deals dont qualify in the first place). You sound like the type that enjoys playing one "desperate" broker over another (paraphrasing your superficial insight into the mortgage industry) hence the fees are designed for people like you who think other people should work for free (I'm sure you like to milk brokers for all their information before you dump them for the next guy).

Mortgage processing and underwriting haven't been outsourced to India yet #8, like your credit card has. Unfortunately you have to pay all those poor little processors and underwriters an American wage.

Your Senator and Congressman are awaiting you testimony #1,#8. Write to them and let them know about your desperation. I'm sure they'll make it a priority over Iraq, immigration and national healthcare.

#8, do you tip the waiter and the waitress when you go out to eat?

How about tipping cab drivers?

What the FUCK soes this have to do with either A) Desperation - #11 or B) Tipping?

I am sure all of you have just walked into a car dealership and said -- I will just pay the sticker price because your service is sooo good! Ridiculous.

BTW -- processing fees do run into the thousands on this level of a deal, and I am waiting with baited breath for Citibank to outsource all of the jobs to Mumbai, like I did with all of the overpaid technology dorks that worked for my comapny (of which I am sure #10 and others on this thread are as they have nothing to do but post BS all day)

I am constantly amazed at the retards who can't just offer some advice or say nothing.

Thanks for all of your help.

Processing, underwriting and application fees do not run into the thousands unless you do not know how to shop or read a good faith estimate.

He/She might be confusing all the fees together.

Technology dorks? I didnt like how #3 put things but, now I am starting to think twice about you #14

Just got through reading the thread, sounds like you got plenty of advice #14, you just dont want to listen.

Are the people who run Streeteasy technology dorks? O, wait this serivce is free...... watch when you start charging guys.... some people have an inflated sense of economic entitlement.

@#14 Technology dorks do not post BS all day, they build the forums where others can post BS all day.

uhh...confused. This guy was just asking for some advice. Given that the prevailing sentiment on this board is"real estate brokers are scum, screw them over!dont pay!save your money" I don't know how when it comes to mortgage brokers the entire board has turned into the mortgage brokers money protection society.The guy wants to get a good deal.Whats the big deal?

You know #14, the markup on new cars is not too high.........

Hey #14 don't you tip the service manager when you take your car in for maintenace?

She lives in Manhattan, she probably doesnt own a car......... most Mahattanites rarely go ten blocks beyond their apartment.

#21 because realtors are dumb and you have to have half a brain to become a mortgage broker.

Looks like all the waiters, waitresses, cab drivers and mortgage brokers are banding together today #21.

even cab drivers know how to read a good faith estimate and differentiate the fees.

#25 -- GOTCHA . . . we have our MORTGAGE BROKER!

Typical stats: C+ state school student, former HS baseball star, now local softball king, ex Yellow Page salesman, working from suburban home in CT, alternating web pages between streeteasy and porn as his wife picks up the kids in her chrysler minivan . . .next career, WAL-MART greeter

state school? #28 are you the guy who starts the teacher bashing threads too?

nope I was a state school grad too -- just know the C+ type MarCom majors . . .

I'm not a mortgage broker and I went to a SUNY school...... what is wrong with SUNY schools?

Whats wrong with suburban CT? #25 are you one of those guys who is afraid to leave Manhattan and ride the subway into the boroughs (and beyond)? Crime is down you know.

I played golf with some mortgage brokers once, no way they could have been former baseball stars.

#30 Let me guess, you were a D- accounting student and the last time you bought a home you saw the broker's yield spread at closing and thought he goes home with a big fat check, not taking into account, overhead, rent, employees, advertising, phone, heat, power bills etc.

lol. at least the bashing seems pretty equal opportunity on this thread.

I dont think my mortgage broker made it past high school.

My mortgage broker was a former furniture salesman

Havent you heard #28------ Walmart may never come to Manhattan

http://www.boston.com/business/articles/2007/03/28/wal_mart_may_never_enter_manhattan/

Poor mortgage broker

#28 are you married to #14? Trying to score points by defending her on a message board?

I suspect some of these people arent mortgage brokers. Could be underpaid underwriters.

maybe #14 and #28 are the same person -- maybe all of the posts are from the same person!

Dumb. Why can't people just answer questions. They should charge a fee for this site. Then the jerks who waste everyones time will be gone . . .

Several banks (Citi, ING) have flat closing fees.

I paid $525 in Bank Fees for my closing. This covered the bank's attorney, appraisal, and all misc. fees.

I paid tens of thousands of dollars in other closing costs:
Points (my choice)
Mansion Tax (non-negotiable)
Mortgage Recording Tax (non-negotiable)
Title-Insurance (rates set by state and non-negotiable)
Agency fees (negotiable, but not high...certainly not in the thousands)
Attorney fees
Real Estate Escrow
Common Charge Adjustments

The question was partially answered and some people didnt like the answer. Not enough room to go through mortgage banking 101 in a message thread.

#1 was talking about application and processing fees. With most reputable brokers should be under a thousand.

#43 haven't you ever met a google trained engineer..... people dont want to bother learning traditionally anymore.... they want a quick answer from a message board or internet search.

To #14 - What kind of company do you run (industry?)?

the mortgage application, processing fee, appraisal, processing, and bank's attorney should be under a thousand. If anyone is charging you more, they had better be offering rates well below market.

Nope #47----- When you through bank attorney and appaisal on top of application fee and processing, you are looking at something closer to 2000.

#14 here -- web development shop . . . all outsourced engineering to Pak/Russia

@ #14 - You almost seem proud to be outsourcing.

#48, several banks have a flat fee for closing: processing, bank attorney, and appraisal for under $600.

My bank closing costs were $550 for processing fee, appraisal, processing, and bank's attorney and $15K in points. This was from a Smith Barney progam trhough CitiMortgage. The application fee was $440.

#51 You will most likely pay for that with a slightly higher rate or points. What was your loan amount?

When getting a 500k or 1 million loan, what difference does it make if the fees are 550, 600 or even 1000-1200 if you are getting good service, or are more likely to get approced at one place over the other?

#53 bunch of cheapies on this board

It was a 1.5MM loan (1 pt, 5.75% fixed 10/30 IO).

I'm not an idiot. I can compare mortgage rates to APR and compare offers from different lenders.

credit score over 720-740 or below 720?

and how much money parked at smith barney?

My credit score is (depending on the agency) 780 or 790. When I secured my mortgage, I had just shy of $7MM at Smith Barney.

Well, there is the answer to why you can get slighty better rates, terms and fees. 740 scores can get you better rates from some superjumbo lenders and keeping a 7MM client happy is definitely an incentive to knock off a thousand dollars in fees.

My rate is good because my credit is good.

My fees were low because Citimortgage offers the same flat rate closing fees to all mortgage clients, whether they have a billion in assets or are scraping together a 10% downpayment by collecting stray coins from their sofa.