my mortagage broker is charging loan origination fee of 1% and mortgage consult fee of $3085, is this right?

Deal Score0

loan amt 179000. int. rate 7% there is also an underwriting fee of 195.00

10 Comments
  1. Reply
    linlyons
    April 29, 2011 at 11:29 pm

    so what does the local bank charge?

  2. Reply
    ZHnDC1
    April 29, 2011 at 11:42 pm

    Consult fee is bogus…

  3. Reply
    Bernie K
    April 29, 2011 at 11:59 pm

    In my 17+ years in real estate, I have never heard of a “mortgage consult fee”, I’ve heard of a “ripoff fee” and this looks like one.
    Please consult another lender and make sure to get a “Good Faith Estimate” and have someone impartial and knowledgeable go over it with you.

  4. Reply
    jmrob29
    April 30, 2011 at 12:24 am

    They don’t need both fees. Tell them to knock the origination fee to 1/2% (very reasonable) and to eliminate the consult fee or you’re going to another broker.

    They should scramble to keep your loan – especially if you have good credit. Start searching on-line at places like LendingTree to see if you can get a better rate.

  5. Reply
    teran_realtor
    April 30, 2011 at 12:36 am

    Let him know that you’ve decided to consult with a different mortgage broker. Find one who does FHA loans.

  6. Reply
    ready2go67
    April 30, 2011 at 1:25 am

    RIP OFF!

    a 1% originatio fee is standard, but the other fee is BS!!

  7. Reply
    Landlord
    April 30, 2011 at 2:11 am

    LOL, I read the other answers, same as mine.

    The “consult fee” is BS. I would bold and underline those if I could.

    You have stumped upon a predator, you are best off looking elsewhere.

    Your best bet is a local bank, where you can sit down and talk eye to eye.

  8. Reply
    starshyne59
    April 30, 2011 at 2:13 am

    You should be able to get that loan much cheaper than that. I would tell him to take off the consult fee, or you will have to look elsewhere.

    Talk to your banker where you have other accounts to see if they have a mortgage department, or if they can recommend a better mortgage broker.

    Good luck!

  9. Reply
    Patriotic Mom
    April 30, 2011 at 3:12 am

    Huge ripoff! That is why I always say to NEVER use a broker.

  10. Reply
    Lisa L
    April 30, 2011 at 3:32 am

    Call a reputable lender. Call the Office of Finance in your state to report this predator. 7% with 1 origination is rip off enough unless your loan is quirky (stated income, low scores, etc) Call a Mortgage Banker, call your credit union, or your bank. I would not even give him the courtesy of calling him back. Just let him spend all that money he thinks he is making off of you.

    Leave a reply

    Register New Account
    Reset Password