FHA 1.5% Loan Origination fee

[JusdoNit]

At first I was told that it was 1%.  Now I am being told that there is an 1.5% origination fee for my loan.  Is this really possible or are they allowed to charge up to 1.5% and this loan officer is choosing to take the high road?????

Experts or those recently familiar please chime in

[StartingOver10]

What does the good faith estimate say?

What is your interest rate? Remember the rate and the fees are inversely related (higher the fee, lower the rate and vice versa).

[JusdoNit]

The rate is 4%.  The origination fee is 1.5% fha

[StartingOver10]

If you are reading off the written Good Faith Estimate the origination fee includes your appraisal fee, credit report, flood certification as well as your adjusted origination charges. The part that is labeled "adjusted origination charges" is the fee your lender/mortgage broker is charging you to get the loan. The other items are third party venders.

So, is the "adjusted origination charges" equal to the 1% originally quoted? If not, you might want to consider another lender.

[JusdoNit]

No.  From what I see all those other fees are still listed and on their own seperate lines.  It seems a bit high.  

[JusdoNit]

It says Fees Details Worksheet

[boomhower]

FInd another lender ASAP.  You should be looking at 1%  and 3.75%. 

[StartingOver10]

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@JusdoNit wrote:

It says Fees Details Worksheet

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Many lenders supply a Fees Details Worksheet or similar document rather than a Good Faith Estimate if you haven't put the property under contract yet. The "clock" for the lenders starts running when you supply the purchase and sale contract and make official application. They have 3 business days to supply the official GFE (Good Faith Estimate) in order to meet RESPA requirements.

The Fees Details Worksheet should mirror the costs on the GFE.

All the costs should be itemized - it sounds like that  is what the lender is showing you. As to the costs, shop lenders to get the best overall combination of rate and terms. Remember the lender can't lock in anything anyway until you have a contract on a specific property. Rates fluctuate slightly all the time. It's not really possible to tell if you are getting a good deal or not with just the posted information.

[JusdoNit]

Thanks for the insight.  I think the program I am using sets the rate @4%, but that 1.5 origination fee still doesnt set well.  I will inquire more.  

Thanks again

[JusdoNit]

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