Broker fees too high?
I am applying for a $380K loan for a condo unit that I fell in love with after viewing the model unit recently. Closing costs run up to $5k and in a separate form it says the broker will receive a compensation of $5,700. Is this amount reasonable? by purvis156 from New Hope, Kentucky. Dec 2nd 2021
Dan Paladin (dpaladin)
#356 ranked lender in California - 792 contributions
Hard to say without a breakdown though typical broker fees are 1 pt or so plus any underwriting and processing fees. Then the question is who is paying the broker fee? Though it is listed is the fee being paid by the lender? Or is it you, the borrower?
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
Welcome to mortgage financing... I have a good idea what form you are looking at. It usually says "up to", and not necessarily what you will pay. With that said, no lender works for free, so you will always pay. There are multiple ways to pay... Up-front, hidden in a higher interest rate, etc. Because of competition, around 1% to the lender is common, and then all the other third party fees. Don't be shy. Just ask your Loan Officer to show you the various options. Odds are they are doing a good job for you. I lend in MN WI IA ND SD. Find me at WI-MortgageBroker.com / Cambria Mortgage NMLS 274132
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