Is it worth seeking lenders with $0 lender fees?

Question

Is it worth seeking lenders with $0 lender fees (such as origination, processing and underwriting fees) or do they just get that money by increasing rates and charging higher points?

Russell Brazil · Answer

No fees = higher rates. It all evens out.

Josh Green · Answer

I would definitely reach out to @Raymond J. Rodrigues he’s done a ton of loans for me and clients and he’s always priced better and is super helpful the whole way through a loan

Erik Estrada · Answer

You and I both know, nothing is free in life. You are paying for it with a higher rate. OR you are paying for it with a failed promise.

Nick Velez · Answer

@Jonathan Blanco

You have received a few good replies so far. For the most part, most lenders are going to be relatively close in cost assuming we are talking about a straight forward loan product, we all borrower from the same pool of money to make these loans.

If you are going to continue buying, you really want a lifelong mortgage advisor in your corner who will help structure loans in your best interest. We get paid the same whether you take a higher rate or buy down, but there are absolutely times when it makes more sense to do it one way or another. This is critical because depending on your future goals and what we think the market is going to do, we can structure everything to keep more money in your pocket for the next deal.

If you are in the Tampa area and plan on purchasing there, I highly suggest you connect with @Josh Green. Financing is important but your realtor will absolutely be the determining factor whether you purchase correctly or not.

Best of luck!

Fernando Corona · Answer

I'd like to ask if we're all assuming a conventional of FHA loan? In the OFF-chance (not as common), you're looking to get into a DSCR loan...there are ways to get no origination or processing fee by originating your own loan (yes this is possible and you can do it in 39 states without a license). The "cost" here is your own time.

Alecia Loveless · Answer

@Jonathan Blanco If you’re worried about $3000 in fees you’re in the wrong business.

Jeffrey Blackman · Answer

@Jonathan Blanco, I'm and investor and a licensed mortgage broker so I've been on both sides of this conversation.

I would look for a lender that (1) listens to you and understands your strategy and needs (hint: it's not always money), (2) has experience working with clients executing your strategy and brings more to the table than just cash - be it advice, relationships, deal-team partners, etc., (3) gives you viable options and explains the pros and cons of each option and (4) you enjoy interacting with - this should be a relationship, not a transaction.

Once you find a few lenders like this (and you should have relationships with more than one), then you can start comparing rates and fees.

Jonathan Blanco · Answer

Wanted to confirm, thanks!

Jonathan Blanco · Answer

Wanted to confirm, thanks!

Is it worth seeking lenders with $0 lender fees?

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