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What is a typical origination point to pay? Is 1 considered to be good?

by iuet451 from Lincoln, Washington. May 14th 2018 Reply


Dave Skow (daveskow)
#16 ranked lender in Washington - 148 contributions

this depends on 1) what interest rate is tied to the 1% fee and 2) what your plans are as far as keeping the property and the loan and 3) what are the other rate / fee options let me know if you would like more assistance Dave SKow

May 14th 2018
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1% Origination is typically the industry standard. However, many lenders (like us) have opted for a no loan officer origination fee scenario to lower client fees and quote rates accordingly. Sometimes we get into an apples to oranges comparison, but it easy to quickly compare the total costs to each other. Be very careful because many banks hide the 1% Origination in the fine print! [NMLS #69386]

May 14th 2018
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Michael Patterson (MichaelPatterson)
#52 ranked lender in Washington - 73 contributions

by Michael...1% Origination is typically the industry standard. However, many lenders (like us) have opted for a no loan officer origination fee scenario to lower client fees and quote rates accordingly. Sometimes we get into an apples to oranges comparison, but it easy to quickly compare the total costs to each other. Be very careful because many banks hide the 1% Origination in the fine print! [NMLS #69386]

May 14th 2018
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I never charge an origination fee! What is this, 2007?!

May 14th 2018
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Nora Smith (nsmith)
#13 ranked lender in Washington - 5 contributions

1% was standard in the past however, these days, most lenders out there (including myself) don't charge an origination fee at all in order to keep the closing costs down as low as possible.

May 15th 2018
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,754 contributions

Origination is 1%. DON'T BE FOOLED. It's all about how you choose to pay it, which is completely up to you. You can pay it at closing, and have a lower interest rate. You can opt for a no origination cost offer, but what they don't tell you is this is achieved by giving you a HIGHER interest rate. Typically a no origination offer is about a .25% higher interest rate. You can split it down the middle too, with maybe a 1/8 higher interest rate and get 1/2% origination. None of these options are good or bad. They are all just tools in your options toolbox. I just personally get a bit annoyed when lenders only tell you one version, and don't explain all your options. It is your money, your loan, your interest rate. You pick! For loans in MN, WI, and SD, visit me at www.JoeMetzler.com

May 16th 2018
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