3% Origination Fee- Am I getting screwed?

[Anonymous]

I signed my loan docs today, but wont get copies of them until Monday.  I saw that the origination fee is over $3000 ($3600 I think).  I asked about what the fee was and thought to myself that it was high, but I wasnt sure.  Googling and talking to my realtor, this seems very high.

Our purchase price is for $130k and sellers are paying $7k in closing costs.  He's getting us to close with little money down (only the appraisal) which my realtor says is unheard of.  We are using the 1st time homebuyer program in Ohio (OHFA) along with down payment assistance. The homebuyer program says right on their website "You may be charged a 1% origination fee".  OHFA has a set interest rate of 4.25% and my LO used my mid-score of 661.

Why are they charging a 3% origination fee?  Is this unheard of?  Could it be because its divided between them and OHFA?  Is it because he's working some lender magic with getting us to close with so little down?  Am I getting screwed?

Im so exhausted with this process, I kind of just want to say screw it and not worry about it.

[ShanetheMortgageMan]

Have you read Understanding the New 2010 Good Faith Estimate? (Broken link is fixed-MarineVietVet, myFICO moderator)

Are you using a mortgage broker?

[Anonymous]

Nope, using a mortgage banker.

Your link didnt work, but I googled it.  I've read how the points work to lower or raise your interest rate/ origination fees.  Is that what you were pointing out, Shane?  I dont know if thats the case.  I wish I had a copy of my GFE, so I wouldnt have to worry about this all weekend.

Judging by your answer, Shane, this isnt unheard of?

[MarineVietVet]

The link is now working: Understanding the New 2010 Good Faith Estimate

[ShanetheMortgageMan]

Thanks MarineVietVet, for some reason the link worked last night. 

VintageGal, if you don't have a GFE then nothing is set in stone but they should still be able to give you a fee estimate, which it sounds like they have.  3 point origination fee would be on the higher end of things in general, but if they are used to working with $100k'ish loan amounts then perhaps 3 points is the norm for your market - the loan amount is on the lower end so I'd imagine they have to compensate for it somehow.  Still the only way you'd know for sure is to get quotes from others for the same OHFA program - I believe they have an approved lender list.

[Anonymous]

Thanks Shane, I appreciate the help.