Mortgage Broker Fee?

btw, thats just to get the application going

And up 3 points of the closing price....

never ever pay a fee to a mortgage broker. That is 100% negotiable, and should never be paid upfront.

$900 + $21k!!!

(eyes bulge out and hair explodes)

There are a number of threads here with many recommendations for mortgage brokers. Yours sounds like he/she's in need of replacin'.

I got the same thing from 2 brokers. Both asking for fee upfront and points fee after.

That sounds really high?? Mine asked for $180 up front fee but he waived it for me after I asked him to (which the way it should be). Other than that, he will charge $600 for some junk fees (which is the norm) and 1pt of loan amount for his commission. This is standard I think. Also search Preferred Empire Mortgage. I believe their fees are very similar to mine.

I am leaning toward my bank with similar rate (slightly higher) with $150 application fee.

Only reason I am concerned is that the closing fee is up to 3 points.. maybe he is referring to closing cost but the contract is very ambiguous that it could counted as additional fee on top of closing cost.

Sounds funny- I am using someone at Manhattan Mortgage, recommended - only when I asked for a reco - by my lawyer. There are basically the same upfront fees as the bank - credit check, application fee, appraisal, etc, and a $150 'processing' fee at closing that I'm hoping to get waived. Makes her money at 1 pt from the bank - and I called the same banks, but my retail quotes were .25-.5% higher

They must be charging points because either they think youre naive or theyre using it to buydown rate. The only upfront fee you should even be paying is for appraisal and that's a third party fee. Mortgage brokers get paid either by upselling the rate or charging points. At the bank, we get you the lowest possible rate we offer and call it a day. If that rate is satisfactory for you then you lock-in with the appraisal fee upfront. If you decide you want to float and not lock in then no fee collected. sunny_hong@countrywide.com

And besides all the fees and rates, etc. I dont understand why people are using mortgage brokers as opposed to the banking side. Ive been on the broker side and there's way too much uncertainty. Theyre just middleman and the loan gets underwritten in Idaho or somewhere. They offer a conditional approval and conditions to close can be added for whatever reason at any time. And you dont know if youre 100% closing until a couple of days before your closing date.

"They must be charging points because either they think youre naive or theyre using it to buydown rate. The only upfront fee you should even be paying is for appraisal and that's a third party fee."

Shong, my man! (gender?)

man it is...

Reason why you use me, is that i have a list of banks that have niches and are constantly updating their programs and rates, every bank is different in this ever changing market, you need me, i don't charge upfront fees, but i am still able to get the lowest possible rates (co-op, condo, Manhattan, Nassau, Bergen County) some lenders don't lend in certain areas some won't lend on co-ops, the point is you are not aware which do and don't, price me against any quote that you have and i will beat the rate and fees, you walk in to a local bank (big national bank) and think i have a great rate with no fees, the truth is many banks don't want to do certain loans (30 year fixed, ARM;s Interest Only loans, super jumbo loans, etc.), so they may be priced well in one area and away from the market for the program that actually fits your needs. I understand the program that best fits you and will put you with the bank that is priced accordingly. call me to discuss, it costs nothing to make the phone call and can cost thousands making the wrong call, Daniel Ledven dledven@customcapital.net 646-419-4192

i'm a bank, and can bank my own deals, why i don't bank the deals(most of the time), is people won't admit that their bank/program and rates aren't the best all the time, and obviously you get paid more when you bank the deal, because nothing gets disclosed (SRP), i care about the client and putting him in the best loan and rate, which equals referrals. Especially in NYC anyone needing a $3 Million dollar loan, most banks won't do the loan or their rates are in-line with others, i have banks that will go to 30 year fixed super jumbo loans $3Million at 6 5/8. i only use niche banks that want to do certain loans and are priced aggressively, many employees at banks aren't allowed to go to outside banks or are unaware because if you work for a bank how can you write a loan at another bank? thats my point. talk about being biased.