Forum
« Good - but cheap - Inspector? Organic water- based »
June 2, 2009
Loan Origination Fee
Ok, so I've read some conflicting information and i'm hoping someone can help me sort it out. Is a loan origination fee 1)just a fee a broker/bank charges for processing the loan or 2)mortgage points (discount points) that bring down the interest rate of the loan? I can't seem to figure this out by looking online. I think they are two different things and that the origination fee is just the fee charged for services. but alas, i'm confused.. Anyone?...?
Comments
I believe it's just an extra bank processing charge...sometimes the bank picks up that charge (as was the case for me), sometimes not. Can't tell you anything more, really, except that it is usually about 1% of the total purchase price.
Posted by: collin85 at June 3, 2009 9:49 AM
An origination fee is a fee charged that the mortgage broker keeps for whatever reason they choose. They can say it coves bank fees or its for their services. A discount point is a fee paid to buydown your rate. Both are tax deductible. But whether youre charged an origination or discount point, you have compare apples to apples. What is the rate that is being offered and what are the total points youre paying? sunny.hong@bankofamerica.com
Posted by: shong1 at June 4, 2009 1:11 AM
thanks for the responses.
Posted by: bodhi_brooklyn at June 4, 2009 8:22 AM
Post a comment
Please be patient while your comment is published. It may take a moment.