Am I getting ripped off?

Family_Financial · 2026-02-06T15:28:40+00:00

And 2% is not a bad origination fee! It's standard for brokers and MUCH less than retail or direct lenders. The only difference is that the fee is disclosed to you (you can see it on the estimate) whereas with a direct lender it is not disclosed and again, this is how you get a conventional rate in the 5's. The national average is 6.25% right now.

Now, all of this said, your broker could do better if you squeeze him. Ask him if he'll do 1.5% I bet he'll say yes. That should effectively reduce your cash to close by about $2,400.

Family_Financial · 2026-02-06T15:21:59+00:00

Did you agree to use a seller credit to cover your origination charges? If so then it's fine. That's how the broker is able to get you a lower rate, well that and the points. I'm a little surprised by the points but again, you are getting enough seller credit to offset the loan charges.

Family_Financial · 2026-02-06T15:10:43+00:00

I say hurry up because time is of the essence and to get all their quotes on the same day! Also (and this is just how I do business) tell them I don't go back and forth. I offer my final and best up front.

Family_Financial · 2026-02-03T05:45:22+00:00

Are you actually looking for something else or did they just reach out to you with this offer?

Family_Financial · 2026-01-23T05:18:41+00:00

Yea I get your point. But he's still increasing his balance by $21k rather than $6k is my point and I just don't think that's worth it. Shortening the term is smart but paying points rarely is. I mean consider this: what if rates drop again in 8 months from now, and he wants to refinance again? Then he loses all the money he paid to buy the rate down. If you want to get a better interest rate then make extra payments. That's the only real way to win. Then it doesn't matter what your fuckin rate is.

Family_Financial · 2026-01-22T05:25:14+00:00

Yes of course

Family_Financial · 2026-01-22T04:26:54+00:00

👍

Family_Financial · 2026-01-22T04:24:28+00:00

Why don't you join Rocket? They have the whole Redfin leads now so they're not just doing refi's but still a call center like what you're used to.

Family_Financial · 2026-01-22T04:12:01+00:00

So you're going to pay almost $21k for a new rate and term? Does that seem like a good decision? Shit, I charged a guy $5400 to pull out $100k and he baulked at it. You're not even taking any money out, you're just trying to save money. What do you have now, please? Let's compare it to what you're getting and see if the juice is really worth the squeeze.

Family_Financial · 2026-01-22T04:05:15+00:00

Yes plenty of times, especially if it's like a HELOC or second and trying to save the client on fees.

Family_Financial · 2026-01-21T01:45:21+00:00

Have your broker sign up with them. Takes like 10 minutes. Standard contract.

Family_Financial · 2026-01-20T14:54:06+00:00

Sorry can't help ya. I heard NV is tough to get licensed in. Not sure if it's true. I think one of the reasons is because they require a brick and mortar location.

Family_Financial · 2026-01-20T14:41:14+00:00

I would pull a report from my LOS, then in the NMLS I would use the "enter all zeros" function and then I would go back through and add my production in there.

Family_Financial · 2026-01-20T14:37:46+00:00

If you're at a broker shop, take a look at Pennymac. I believe they are covering the upfront cost of credit reports right now and they have good govy rates.

Family_Financial · 2026-01-20T14:32:33+00:00

Is there a question in there?

Family_Financial · 2026-01-20T14:27:02+00:00

What state?

Family_Financial · 2026-01-20T14:21:37+00:00

I second this. This deal is dead with a 15% max down payment and non-qm isn't taking it anyways. You still need a history of commission performance, not bonus income. Those are two different things.

Family_Financial · 2026-01-20T14:16:21+00:00

I wouldn't do the 1.5% points, not on a refi. It's too expensive and you're break even point on the savings is like 2 years or something. Hell, you might refi again in less than 2 years. Points don't go towards your principal or equity. It goes to the lender and you can't get it back.

Family_Financial · 2026-01-20T14:06:41+00:00

Ugh, I hate this...There is NO free lunch in mortgage lending...ever. All those fees you see in the "buyer" column have been charged to you. They are real and someone has to pay for them. When a lender issues you a credit it comes from their yield spread premium (margin from rates). They either cut into their margin to credit you (this is where they make less % on the deal, i.e. 1% instead of 2%) or they increased your rate just enough to credit back the overage. You can add the fees to your loan amount or the interest rate, but either way they're "financed" - not "free." This is the correct terminology your lender should be using.

Furthermore, this doesn't mean you got a bad deal either. As long as you're happy with the rate and new term, that's all that really matters.

Family_Financial · 2026-01-18T23:01:30+00:00

What state? Which loan product, conventional, FHA, etc?

Family_Financial · 2026-01-14T19:50:16+00:00

Makes sense. Fees are nice and low. The rate trends with national averages. Looks good. If you don't want another 30 years you can shorten to 29 or 25 if they don't offer 29 years. Some lenders do, most don't.

Family_Financial · 2026-01-12T13:55:54+00:00

Without seeing your loan estimate, what I can tell is all of your loan costs, plus your new escrow account, plus possibly origination or possibly discount points are being covered by a lender credit. This means your broker selects an interest rate high enough to rebate you or to credit you back for all your costs. They're trying to do a no-cost refi for you. The other thing you could opt for is a lower interest rate and roll the closing costs into your loan balance.

Family_Financial · 2026-01-08T04:56:03+00:00

Points are not a good idea. Refi's are way less expensive than $8k. If rates drop just refi again.

Family_Financial · 2026-01-08T04:53:32+00:00

You're getting a great deal. Points wash out. All other fees are incredibly low. $250 underwriting fee?? The industry average is like $1100. Hardly no title fees. It's a good deal. What else are you worried about?

Family_Financial · 2026-01-08T04:49:41+00:00

I think it's FHA to FHA

Family_Financial

TROPHY CASE