Waht exactly is an "Origination Point"? How come some brokers have it some don't?

A mortgage origination point or a just a point as it's referred to, is a fee that a bank or mortgage brokerage charges for originating the mortgage. It is a percentage of the loan amount that is the upfront source of income for a broker or bank. You don't have to pay points, but if you don't pay this upfront fee, you can expect to get a higher interest rate on your mortgage. This is because if you are not paying upfront in fees, you are going to have to pay for it in the interest rate, or on the back. Either way the mortgage broker or bank needs to get paid. A typical origination fee is going to equal one percent of the loan amount. So, for example, a 1 point origination fee on a $200,000 loan will be $2,000. That fee will go to the mortgage broker or bank for performing the originating duties. In the case of a mortgage brokerage, the fee will go to the mortgage brokerage and then the loan officer that actually closed the loan will receive a percentage of that amount as commission. The most common origination fee will be 1%. The 1% fee is typically negotiable, but don't be surprised if your loan officer will not lower the origination point. Be wary of working with anyone that is charging more than a 1% origination fee for a standard conventional or government mortgage. Find low mortgage rates and low origination points at http://www.city1sthomeloans.com