A Mortgage Broker can charge for their services, but since the banks do pay them it dosent seem fair if you get a Broker that is asking for extra funds. I worked with a broker for my renewal and they asked me for $500.00. I looked around and found that Easyrate gave me the same mortgage rate and same mortgage product and they did not charge me at all. My Mortgage Agent told me that only the hardest deals to get approved or the ones that get you a super low rate with a broker fee should ever be charged. So look around. I think you can find better. Hercule....

Same here no service charge or fee with easyrate. My Bank didnt want to charge me a fee but they couldnt get the same rates. Sorry TD you lost my business.

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Sounds like it is better to use a mortgage broker than to go find your own lender. anyone want to share their experiences? how much does a mortgage broker charge? that is, what fee is attached to your loan since they do not charge upfront fees. (right?)

It depends. If your credit is shaky or you aren't sure if you will qualify, a broker may be the way to go. They will take your application and search different lenders until they find one that will finance you. Their fee is generally 1% or less of the loan amount. I used a broker to buy my house since I had no traditional credit. No credit cards, no car payments. They told me exactly what I needed to do and the information that they needed, and I had approval within 2 weeks. I'm also a real estate paralegal, so if you can't or don't want to find your own lender, a broker is the way to go.

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Hi! i was wondering, what is the normal origination fees that mortgage brokers charge? i had one quote me 1%. i need to get a loan for about 250k, so i guess that comes out to 2500. for that much money. are they supposed to do most of the work. meaning have all the paper work ready, correct and submitted on time so the house closes without a problem? if i went to a bank, wouldn't they charge you a loan origination fee too? or does the mortgage broker charge you one as well as the place where they find the morgage for you? thanks!

It is true that a normal origination fee is about 1%. For that price they need to be doing all of the work, however people a lazy, so...? Anyway, I have digressed. You should know that a mortgage broker is not just getting that 1% from you. Your broker is also getting discount points on the back end of the deal. The bank that he is getting your loan from is paying him extra money for any higher interest rate he can charge you. So it is in his best interest to charge you the highest possible rate he can get you to pay. Solution- Find a dicount or wholesale lender. These lenders are people who make their money selling the mortgages directly to the secondary market. Eliminating the middle man they will usually give you the best rate.

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I found a mortgage broker in our area from a list of approved fha mortgage brokers. we have an appointment to meet with him tonight. we have already submitted our application via www. i spoke him yesterday and gave me a list of documents to bring. one of those things though was a check for $55. for an application fee maybe. i spoke with my mom about this and she said she has never had a pay a charge like this. is this a normal thing? should i find another broker? should i call around and see if others in the area are charging this fee? advice please? the fee is non-refundable. it is a factual verification for income and residence....does this sound about right? we are first time home buyers and need assistance with the home buying process. this is where the broker comes into play for us.

I can't tell you how many properties I have bought off the top of my head. I have NEVER been asked to pay a fee when getting pre-approved. There are fees involved, but you pay them AFTER you have the loan during the property closing. I would find myself another broker. This one either is scrounging because they are not earning any money, or they have no clue what they are doing. Either way, this is NOT someone you want helping through this major purchase.

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My broker wants to charge the followings for a loan amout of about 242$k. and in current best market rate of about 6% 30 yr fixed stated income. appraisal fee$ 300 processing fee $350 underwriting fee $ 700 titile insurance $ 1100 closing cost $ 2450 ysp paid to broker 1.5% that is $ 3663 monthly payment would be$ 1805. the broker says there is pmi as we are putting 5% down. now bank of america wanna give me same stated income loan of $ 250k ,30 yr fixed, 10% down andwhich is $225k loan on rate of 5.500% but discount point of 3.552% that is $7992 i have to pay in fee, but no pmi for putting 10% down only no closing or any lending fees. if you compare, which deal you find better boa or thr broker's? over all, where i am losing more money? boa has no pmi which means i am saving over 100$ monthly for several years right? i think despite the $7992 discount point fee, i still think boa's deal is better as no lending fees of any kind and saving thousands on pmi. ?

I would go with BAC, pay the points and avoid paying P.M.I. P.M.I. is throwing money down the drain, as a buyer you get absolutely no benefit from paying it. The points are deductible from your taxes spread over the life of the loan. Take the $100. you would be paying for P.M.I. and apply it toward the principal every month. Two other reasons to go the BAC way is the fact that your loan amount will be 5% less because of the 10% down payment, your interest rate will be lower and you won't have to pay any lenders fees. Good luck whichever way you go.

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As a chicagoland mortgage broker, i'm always looking for more business. but, as rates increase, and the public records get hit harder with cold calling (and i don't have any established networking with realitors and builders ...yet) whats the best way to find more business? i would love to charge less in fees, but since those fees put food on my table, i at least need more volume. i know referrals work well too, but i need the business first.

1. Specialize in loans for people with spotty credit, then do a mailout to local realtors saying you can get these folks financed if a traditional lender turns them down. One or two may remember you when they're about to lose a deal. 2. Partner with a small local builder. My townhouse was built by a private local company. The builder offered a 1% discount on the purchase price if you went with his mortgage broker, which was another small local company. 3. Get some of those signs made that can be nailed to wooden stakes. Usually 100 for $50 or less - can be done at Kinko's. Put them everywhere you can think - new neighborhoods being built, near busy intersections, etc. Put on the sign the best terms you'll ever be able to offer (0 down, 0 closing, 5.5% or whatever). 4. Find a bank that can close loans fast - from app to close. Get to know their process till you have it down to a science. Then hand out your cards at real estate auctions, tax auctions, etc. saying you can close a loan in 14 days or whatever you can do. Some of these folks will call you when they've bid on a property but can't close by the payment deadline. Good Luck

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I have started the process with a mortgage broker for my 1st mortage and i have found a lender that i would rather use then the one the broker has found for me. will i be charged a fee from the broker and what is the approx. amount i will have to pay? i haven't signed any final papers with the broker, i have only been pre-approved.

If a broker charges a fee, they should tell you first. Here in the uk they have to. If the broker is independant then get them to compare the two lenders, they may be choosing that loan for reasons they havent yet explained to you. Get them to show you the differences and the reasons they chose their lender.

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I am purchasing a home fha and everything i find online says the fha rates are under 5.5%, so with a 40% ltv and a 698 credit score why is my broker trying to charge me 5.75 and than a discount fee of 1% to get 5.5% can't i just get 5.38% without any of this bullshit? he also said that fha has a new rule that you have to buy the rate down??? should i abandon this clown? because i only have 3% down??

I have a better question. Why are you getting an FHA loan at all if you have a 698 credit score and a 40% LTV? FHA requires you to pay PMI for a minimum of 5 years...regardless of the LTV...that is what is different about FHA loans. If you went conforming, you wouldn't have to pay the huge mortgage premium that FHA charges OR the monthly PMI payments. Yes, it is pure BS. Rates are much lower than that in conforming. He has probably told you that you need a 700 credit score and that you are a little short, right? Well, your 40% LTV takes care of that in a skinny minute. Yes, abandon that clown and find somewhere else. If you belong to a credit union, they are usually really, really good to work with or go with a major mortgage company that you have heard of. Individual Mom and Pop brokers usually have to charge more.

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My broker wants to charge the followings for a loan amout of about 242$k. and in current best market rate of about 6% 30 yr fixed stated income. appraisal fee$ 300 processing fee $350 underwriting fee $ 700 titile insurance $ 1100 closing cost $ 2450 ysp paid to broker 1.5% that is $ 3663 monthly payment would be$ 1805. the broker says there is pmi as we are putting 5% down. now bank of america wanna give me same stated income loan of $ 250k ,30 yr fixed, 10% down andwhich is $225k loan on rate of 5.500% but discount point of 3.552% that is $7992 i have to pay in fee, but no pmi for putting 10% down only no closing or any lending fees. if you compare, which deal you find better boa or thr broker's? over all, where i am losing more money? boa has no pmi which means i am saving over 100$ monthly for several years right? i think despite the $7992 discount point fee, i still think boa's deal is better as interest rate is low and no any other fees and no pmi.

Have both of them work up your loan to the point of DOCs, chances are BofA will back out on the deal at the last minute and when you go back to your Broker with your tail between your legs he may hit you with an additional "fee" to spite you. Better safe then sorry!

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My broker wants to charge the followings for a loan amout of about 242$k. and in current best market rate of about 6% 30 yr fixed stated income. appraisal fee$ 300 processing fee $350 underwriting fee $ 700 titile insurance $ 1100 closing cost $ 2450 ysp paid to broker 1.5% that is $ 3663 monthly payment would be$ 1805. the broker says there is pmi as we are putting 5% down. now bank of america wanna give me same stated income loan of $ 250k ,30 yr fixed, 10% down andwhich is $225k loan on rate of 5.500% but discount point of 3.552% that is $7992 i have to pay in fee, but no pmi for putting 10% down only no closing or any lending fees. if you compare, which deal you find better boa or thr broker's? over all, where i am losing more money? boa has no pmi which means i am saving over 100$ monthly for several years right? i think despite the $7992 discount point fee, i still think boa's deal is better as no lending fees of any kind and saving thousands on pmi. ? please compare apple to apple and tell me which is better? my broker's fees come up to just over $5k and i am asked to pay pmi for that loan. with boa, i pay no fees of any kind and no pmi but $7992 discount point.

First of all check with your local FHA loan company. You can also go online and have the banks compete for your business. If you still want to consider the different loans. The BOA loan is the best in the long run. However i will not do business with BOA. And with just 10% down and no PMI then not only that will save you money but it takes the burden off of you trying in a few years getting the pmi off of the loan. Anyway you decided to go Best of luck with your new home.