7-1 ARM fees that I paid, March, 2011
(03/31/11) In response to those asking about the fees in relation to my 7-1 ARM, on a 296k loan, at 3.125%, I agreed to the following: 1% point ($2960); processing fee $695; underwriting fee $795; wire transfer fee $17; MERS search fee $6.95; Appraisal $445; Tax service fee $57; Flood certification $15. The rest will be handled by my own attorney to arrive at closing. Thoughts please? by ARO1975 from New Haven, Connecticut. Apr 1st 2011
John Schweer (johnschweer)
#24 ranked lender in Kansas - 163 contributions
The processing and underwriting is lender profit of $1490 plus the 1% of 2960, depending on the options it may have made sense but on ARM loans you really want to limit the expense as you don't have long to recapture the costs.As a rule of thumb I don't like my clients paying any points on ARM loans unless there is a special situation
Rick Pelleriti (RickPelleriti)
#366 ranked lender in California - 59 contributions
To give you a comparison, my fees would be $395 for processing; Underwriting is $945 (includes wire transfer, MERS, Tax Service, and Flood); Appraisal is $350.Net, I would be about $341 less. Yours isn't too bad.
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