Refinance origination fee charges too high?

[ballgum]

This is for my personal property and I Just wanted to get confirmation on the charges to see what you thought on the points/fees/rate.

Through aimloan off the hud

Refi amount: about 52k
terms: 3.5% 15yr P&I
origination fee: $1995 <-- this seems too high??
government recording charges: $108
title insurance: $1068
appraisal fee: $325

Monthly payment including P&I: $375. My monthly payment will drop by about $400/month, but if I can get the same rate for no or less points/fees, I would prefer that!

I'm mostly concerned about the origination fee as that seems too high...

Thoughts...good/bad?? In TX btw

[justin0419]

My bank charges a $167 fee for the loan.  The title insurance can run anywhere from $150-400.  That amount is for 25k houses.  Appraisal seems average.
I think you're right.  You can probably do better on the origination fee.

[Mdhaas]

According to their website, it looks like this category is a catch all:

AimLoan charges one GUARANTEED ORIGINATION FEE which includes processing, underwriting, credit report, document preparation, funding, tax service and flood cert fees

From what I see your title insurance for 52k  should be around $520.00

[ballgum]

According to their website, it looks like this category is a catch all:

AimLoan charges one GUARANTEED ORIGINATION FEE which includes processing, underwriting, credit report, document preparation, funding, tax service and flood cert fees

From what I see your title insurance for 52k  should be around $520.00

Hmm so how much should total fees cost? I guess I should shop around local... The thing is, this is the lowest rate I've seen. Maybe a local broker/bank can match it?

[ballgum]

My bank charges a $167 fee for the loan.  The title insurance can run anywhere from $150-400.  That amount is for 25k houses.  Appraisal seems average.
I think you're right.  You can probably do better on the origination fee.

Wow, so about 500 total... At what rate %? Do they handle TX?

[yrush2000]

You have to remember fees can vary from state to state on everything.  Origination fee may seem high but your doing a small loan.  Loan officer does same work on a 50K loan as a $500K loan.  It maybe the min. he wants to work for since that fee goes to the broker.

If you do not like the fees ask to lower it or shop elsewhere

[justin0419]

Our bank was doing 6.5% on our loans.  They don't handle TX.  I still think you'll have better luck once you start checking the smaller banks.

[Dave T]

You don't have enough information to do any comparison shopping.  You need a Good Faith Estimate of Settlement Costs from every lender that gives you a quote.

If the fee from Aimloan includes all the charges that others lenders itemize, then their fee me prove to be competitive.  I will say that if you have owners title insurance already, then make sure that the lender only quotes you lender's title insurance.

Only when you see what the total cost of financing is for each loan product, can you determine which would be the best deal.

[ballgum]

Thanks everyone. BTW, everyone I've spoken to has said they can't even match that refi rate w/closing costs and to go with aimloan. When asking about why the closing costs are so high, it seems it's because of the small loan amount. Title insurance may come in a bit lower when it actually goes to close...

[kdhastedt]

If you already had title insurance from before, you should get a 're-issue' rate at a substantial reduction.

The 'Origination Fee' is a 'junk fee' - see if you can negotiate it.  Tehy will probably tell you that it is non-negotiable but EVERYTHING is negotiable.

Keith