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Rate increase effects on closing fees

As rates seem to be fluctuating a lot this last quarter, how much impact really does .05%+ increase or so to a mortgage rate truly have as far as fees charged on a mortgage loan? I was approved in late November, but decided to wait to see what rates will do after the shutdown. by rnelson251 from Augusta, Maine. Dec 31st 2018 Reply


Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

All loans have expenses that are incurred during the initial stages of the loan process. Lenders that do not charge fees, must recoup these expenses through the interest rate, which will continue for the life of the loan. It shouldn't be unreasonable to expect a lender to recoup those expenses up-front as fees instead of collecting them via the interest rate.In a rising rate environment, like what we are currently in, it seems to me to be a little foolhardy to delay a closing on the hopes that rates may turn favorably. You are much more likely to see rates move up rather than down. ~ Bert Carpenter, The LoansA2z Team of Cherry Creek Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California and Washington ~ www.ApplyYes.com 888-889-9950

Dec 31st 2018
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It depends on a lot of factors. Just make sure you shop around and are happy with your loan.

Dec 31st 2018
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Greg Schatzke (gschatzke@cucompanies.com)
#80 ranked lender in Minnesota - 3 contributions

Fee's charged having nothing to do with interest rates. Most fee's are fixed and a few vary depending upon your loan amount. Playing the rate game can be risky as rates change throughout the day. Make sure you work with a lender that knows what rates are based upon, what economic events cause them to move and how the Fed rate changes affect long-term rates.

Dec 31st 2018
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