Our Fees
Origination Fee
An origination fee is a payment associated with the establishment of a new loan.
NO Origination Fee!
The fee usually varies from 0.5% (half a point) to 2% (two points) of a given loan amount, depending whether the loan was originated in the prime or the subprime market. For example, an origination fee of 2% on a $200,000 loan is $4,000.
Most banks and brokers charge an origination fee. Some loan structures also call for discount points. Discount points differ from origination fees. Discount points are used to buy down the interest rates, temporarily or permanently. In other words, in exchange for paying a lump sum up front, the interest rate will be reduced. Origination fees and discount points are both items listed under lender-charges on the HUD-1 Settlement Statement.
A broker fee or loan origination fee is paid to the person handling a loan application. This fee can be a set price or can be stated as percentage of the loan amount. The origination fee should be located at the top of a "good faith estimate" and should be disclosed within 3 days after applying for a home loan. They must be disclosed on the "good faith estimate" and on the final closing papers, commonly called the HUD (short for "HUD-1 Settlement Statement").
In most cases, one has to pay other fees in addition to origination fees.
Processing Fee
A processing fee is used to cover the costs of processing the loan.
The fee is earned when a commitment to finance the subject property is issued froma lender in the approximate amount,and at rate and terms acknowledged to be acceptable to the Borrower. The processing fee is a separate and one time fee.
Succss Fee
A success fee is earned is a percentage of any loan secured by the Property for which the Broker was the procuring cause of the financing.
The success fee does not include any point(s) to be paid to the lending institution, closing costs or any point(s) or fees paid to other mortgage consultants for their services. The success fee is fully earned by the Broker when the financing has been approved in writing by a lender with terms and conditions acknowledged in writing to be acceptable to the Borrower. This fee will be collected at the loan closing. If the lender is prepared to close escrow and the Borrower does not appear at the scheduled closing or refuses to schedule a closing, then the success fee is deemed to be fully earned and payable upon demand so long as the failure to appear and close is solely the result of the Borrower's acts or omissions.
