Can a loan origination fee (or part of it) go to buy down the interest rate?

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I am in the process of doing a mortgage loan and one of the conditions was that I would not pay an origination fee. Now the loan officer is telling me that part of the origination fee that I see on the GFE is going to buy down the rate.

I’m talking interest rates, loan origination fees, closing costs, etc. Any cost associated with the mortgage process.

Amegy, Well Fargo, Citi
I have heard Bank of America is terrible, which is why I didn’t include them.

4 Comments
  1. Reply
    Tambo1228
    February 5, 2011 at 1:17 pm

    sounds like you are about to enter into a predator loan, there are agencies that will help you not become there prey, go to NACA.com.

  2. Reply
    Jeromy W
    February 5, 2011 at 2:00 pm

    I’ve never heard of that, but that doesn’t mean anything. Do you have written proof that a condition of the loan was that you were not going to pay an origination fee? If so, take this to the LO to dispute this fee. question everything and ask often, good luck

  3. Reply
    Realtoratheart
    February 5, 2011 at 2:28 pm

    Any of them except BOA or US Bank

  4. Reply
    Age of Reason
    February 5, 2011 at 2:59 pm

    the fees are all the same they may vary by a few dollars.

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