origination fees

[Anonymous]

met with a mortgage broker last night and he told us that there is a 1% origination fee on their mortgages. normal?

[Anonymous]

Ours has that but is giving us a credit which offsets it, so basically, there's no origination fee. I've found that a lot of them are willing to negotiate, up to a point.

[Anonymous]

Yes - 1 point is normal on residential. If they waive your origination fee they are just reclaiming it in your interest rate.

Part of your origination fee is the compensation your loan banker or broker receives from mortgaging your (new) home. So again, if they waive it, they recoup it elsewhere, they don't process all that paperwork out of the goodness of their hearts, and their kids have to eat too.

[Anonymous]

No, don't pay points.

[Anonymous]

I see flat fees ranging from $675 to $1k regardless of loan amount. 1% sounds high.

[Anonymous]

Anonymous wrote:met with a mortgage broker last night and he told us that there is a 1% origination fee on their mortgages. normal?

Not unusual but you should shop around. the question is: What are you getting for it?

Also remember that origination fees ("points") are entirely deductible on a purchase (they have to be amortized if paid on a refi).