Banks origination fees

4 Replies

So I found a bank that will give be a 30 yr mortgage but the origination fees are like $900. Do you all think that is to much also interest rate is 5.8. Im use to paying about $400 in origination fees but thats on a five year ballon. Im trying to get into longer notes because I don't know what are banking future looks like and will there be another crisis. Note: I invest in $50k and below houses this one should apprise at $49k.

@Robert Howard closing costs like your origination fee are added to the basis of the property and depreciated over 27.5 years assuming its residential.

Not a tax professional, no tax advice given

@Robert Howard @Caleb Heimsoth  

Actually, origination fees and any costs associated with the loan are added to the loan cost basis and amortized, not added to the property basis.

I just closed on a property. Origination fee was $900 before points. Fortunately for me, the lender dropped the fee cuz he missed settlement. My other property was around $900 also. There's a whole list of ways lenders itemize this cost on the closing disclosure, underwriting fee, origination fee, processing fee, application fee, etc. As long as they add up to around $900 or less, I accept it.

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