DISCOUNT HOME LOANS

MORTGAGE FEES

Generally a dirty word in our business. But do you work for free? I don't,  I have a family to support too. Most of the fees we charge are not ours. 

The Three areas of all home loans

Sources of Income

Origination Lender (Hey that's me Discount Home Loans)

The loan officers make only 1% of the loan. 

Credit Reports and Appraisals  if either of these costs us a buck we are only allowed to charge a buck forget about the fact it costs us time and effort and money (paper, toner, ink, internet connection,) We are not allowed to mark up or make any money on these items.

Processing: The staff that processing your new home loan need  to get paid for doing their job and covering there costs,  

and the Interest rate charge

Funding (Not a function of Discount Home Loans)

Underwriting, Document preparation, Flood, Tax Service, wire transfer fees, FedEx, Auto underwriting, internet retrieval fees

Servicing  (Not a function of Discount Home Loans)

Cash out Refi's if you take out more money than you owe on the first, this is considered a cash refi, and the investors charge us. 1/2 of 1% . Again we do not mark up this fee we only pass on the fee.

Your new loan, Home loans are sold every day and so will yours. What the new investor is buying is the cash flow from your loan. Also known as Servicing Rights. The more money he has to service the more profit their is for him.

By Requiring impound account from you and me, your  loan servicer has more cash flow to play with, if you do not wish an impound account then the loan has less value. Forget about interest rates

and Closing Agents (Escrow, Title, Notary) (Not a function of Discount Home Loans)