I need advice on load origination cost for Mortagage.?

I am getting a load for an investment condo in Atlanta GA. The lender (Countrywide) is charging me 2% in orignation cost. Could someone please advice me how to beat this down by at least 1%? I thought it is too high.

Thanks

Olu,

It sounds as though this might be one of your first investments properties. It is important to remember that just because you might have the money to invest in something, doesn鈥檛 mean that you should give it away so freely.

In regards to your question, you should associate yourself with a lender that will give you 0 points and 0 origination on your investment property loan. You might have to go to a broker rather than one of the big lending institutions. Remember, everything (other than your 3rd party fees) is negotiable. Just because they show you something on paper and call it their fees, that doesn鈥檛 make it final. Negotiate your terms and have them meat them, and if they wont, then find someone else. Due to the corruption of the mortgage industry the past couple of years, the lending institutions have cracked down on the lending practices. So be careful, but be aggressive. Once you buy this property you are stuck with it, no refunds, not backing out.

One trick that lenders will use is that you won鈥檛 have to pay any points or fees; however, they will get paid by the lending firm they use. You will notice this on your closing statement, and it might be reflected on you APR. This is how they make their money, and they will make their money, so don't pay more than you have to. Set your terms and stick with them.

Happy Hunting

Call another lender. Take the good faith estimate with you and ask them if they will bring it down to 1%.