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Mortgage Broker Fees

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Anonymous
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Mortgage Broker Fees

If anyone has some insight it would be appreciated.  I am currently in contract and I am working with a mortgage broker for my loan.  I will be paying 1 point Broker Fee as well as a $445 processing fee.  The broker is also getting 1/2 point in YSP from the lender.  I am currently floating the rate, but I could lock in at 4.875% right now.  The loan amount is $315,000.  The Broker will end up getting a toal of $5,170 in fees.

 

I haven't signed the Broker Fee Agreement yet and I was wondering how this looks and if it is a good deal.  I am doing traditional financing (not FHA). 

 

Thanks in advance for your help!

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2 REPLIES 2
DallasLoanGuy
Super Contributor

Re: Mortgage Broker Fees

1.5% in compensation is not that out of line. Remember... most of that money goes to someone else... not the loan officer. 

 

You WILL find someone to do it for 1% + no ysp if you shop enough. <= there is ALWAYS a cheaper deal. But if you are comfortable with the deal.... don't look back.

 

 

Retired Lender
Message 2 of 3
ShanetheMortgageMan
Super Contributor

Re: Mortgage Broker Fees

Also, the compensation to the lender or broker shouldn't be of great concern - what should be of great concern is that you are getting a good deal.  If you were being offered 4.875% with the 1% origination and $445 processing fee but the other broker would not be making any YSP, would that be a better deal for you?  No, it'd be the same, it's just that one loan officer's company either has a relationship with a lender who at 4.875% would pay them some YSP or they send more volume to a particular lender so they get better rates with that lender than other brokers would.  So it really comes down to what you are being offered.
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