Need some help\advice...

[Lou]

I need some help\advice for my fellow taxidermist and friends. We're refinancing our home and consolidating some outstanding debt. There have been a few "problems" along the way and I sure could use your help in explaining how some of this process works. I know we're on a taxidermy forum, but I also know that many of you, like myself, come from all walks of life and I need to tap your experience.

So here's the deal, we went with Green Tree mortgage broker and they found a mortgage for us at 6.5%. Tonight was our settlement and man did I get a surprise. The closing cost were $6,500!  One thing I need your help with is figuring out what some of these cost are and if they're the norm even without a broker. Here's the break down (keep in mind on my list they show as being paid to Green Tree and not the mortgage holder):

            -Loan Origination Fee $746
            -Loan Discount $746
            -Processing Fee  $795
            -Lender Administration Fee  $550
            -Commitment/Lock-in  $595
            -Application Fee  $295   

If I total the cost going to company holding the mortgage it only comes to a $1000 and some change. Are these cost normal for a broker? What work did they really have to do for it?

The cost of the closing fees are nulling out the advantage in interest we'd save by consolidating. I'm just curious if this is the norm or not, even for a mortgage with no "middle man"? We went through this 10+ years ago so I can't recall if it is or not.

[John C]

Thats exactly why I would not use on of the crooks
Commitment lock in fee???
Ripping you off!!!! You just peed away that money

Loan Origination Fee $746
 should have been included with processing fees on and the same!!
         
Loan Discount $746
again this is a adjustable fee and your seems a bit high, I paid less than $100.00 last Dec. You are paying htem for the interest rate, a good local bank may have waved that fee for you.
           
Processing Fee  $795
Wow like they are not going to make money from the interest.             

           
 Lender Administration Fee  $550
Again this should have been include with the loan origination fee, application fee.
           
-Commitment/Lock-in  $595
           
 -Application Fee  $295   


I talked with my banker last week about putting up a building, for $50,000. I will pay less than $400.00 for a 15 year note. with payements being about $350.00 per month.

My farm loan last year, was an 8 year note and I paid the bank less than $1000.00

My advice is go to your local banker!!!!

[Craig R]

I agree with John C here. What are all those fees?

I just refinanced my mortgage last year to bring it down to a 20 year mortgage and the bank(credit union) actually gave me a check for 287.00 at closing. They had several of their accountants go over the figures because they thought someone made a mistake. Guess I did this at the right time.

I think all together the fees were nowhere close to what you are explaining here. It sure would be advisable to check out another source.

[Jim Tucker]

RIP OFF!  Do NOT sign those papers.

I re-financed with my local bank for $500 TOTAL!

Go to a local SMALL bank/credit union and do it that way.

[AndyO]

Those costs are outrageous! You said your closing was last night-- did you pay the fees? If not, go to a local banker. Those on line brokerage companies lure you in with low rates and rape you with closing fees.

[Lou]

I did sign, however, there is a 3 day grace period, which of course given all of your input, I'm going to take advantage of tomorrow. Along with the hand delivered cancellation letter they'll be getting a nice long description of "why they aren't getting my business".

Thanks so much for replies!