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I am shopping around for a mortgage. Plugged in some numbers at Capital One. The program spit some numbers back at me. I noticed there is an Appraisal Fee AND an Appraisal Management Fee.
What the heck is an Appraisal Management Fee???
It's an extra charge, that's all. It means that CO is making you pay for them to oversee the appraisal process. I would avoid all the big banks and internet call centers. You need a mortgage professional. Find out what they offer in rates and fees before you even get pre-approved.
Scott Drescher
Yes, its a junk fee.
Some brokers and banks have figured out another way to add revenue to their origination fees. The appraisals today are ordered through an AMC (required) and usually the AMC gets their payment by taking a large portion of the fee that goes to the actual appriaser. Most lenders have an ownership interest in an AMC and naturally that is who they order the appraisal through.
the federal govt makes lenders order thru an appraisal management co(amc)...... an independant 3rd party
amc is not a non-profit co..... they have to pay employees so they charge a fee
lenders arent going to eat the cost
appraisers are already seeing a pay cut
legit fee. we ALL have it.... whether disclosed or disguised as something else.
Thank you for all the responses.
Now to find a lender that doesn't charge those fees....
I wouldn't use Cap 1 unless it was totally the last resort and they don't like me already. (BBB is MY friend, not theirs!)
@IOBA wrote:
Now to find a lender that doesn't charge those fees....
dont pick a lender based on one small fee.
it is a legit fee..... though some dont agree that the amt is necessary
if a lender doesnt show that fee on the hud..... then it is hidden in the price of the appraisal.
some lenders do not seperate the fees onn the hud... we dont. we include it in the price of the appraisal. less confusing.
Right, it doesn't matter if the figures come out the same.
IME, the figures don't come out the same. But it is still worth going through the whole estimate because they might be less on something else.
The owners have decided to do owner financing...so I am going through the learning curve on this one. I have checked into owner financing before, but recently.
Any advice?
We agreed to a purchase price, down payment, loan term, interest rate, and a balloon payment. We have not agreed on a monthly payment.
How much does an appraisal cost? It's hard to see how an appraisal management fee could be a significant issue.