Is this loan a good deal, or a rip off?

7 Replies

I just got pre-approved for a conventional loan through a lender recommended to me by a Turnkey company. Wanted to make sure it's a good deal -this is my first house:

Loan for a $100,000 to $200,000 house with 20% down
30 Year Fixed Rate Loan
4.375% - 4.875% with no points being charge
Lender fee: $1194.00

In the email he also said " There will also be 3rd party fees that will be charged. They will also vary depending on the state and sales price. I would be safe to go with another $1,500 - $2,000." Are these just normal closing costs fees?

I have good credit (780) and am buying an investment property (single family house) in the midwest/south region of the United States

Thanks and let me know if you have an opinion on this!

not the greatest but also not bad.  You could probably find someone with zero lender fee, but other than that everything else looks standard.

Originally posted by @Zachary Schimenz :

I just got pre-approved for a conventional loan through a lender recommended to me by a Turnkey company. Wanted to make sure it's a good deal -this is my first house:

Loan for a $100,000 to $200,000 house with 20% down
30 Year Fixed Rate Loan
4.375% - 4.875% with no points being charge
Lender fee: $1194.00

In the email he also said " There will also be 3rd party fees that will be charged. They will also vary depending on the state and sales price. I would be safe to go with another $1,500 - $2,000." Are these just normal closing costs fees?

I have good credit (780) and am buying an investment property (single family house) in the midwest/south region of the United States

Thanks and let me know if you have an opinion on this!

 These numbers aren't bad for an investment loan.  Rates shouldn't be over 4.5% right now and you also have to pay for an appraisal and pre paids.  These will increase the costs but it's normal.  Pre paids are taxes and insurance reserves that the lender holds in an impound account.

Be sure to shop around for the best deal. Also you may want to ask if they keep their loans in house or sell them off to other institutions. Id rather not get notified that my mortgage was sold and have a coupon book show up. 

@Zachary Schimenz , the rates sound fantastic.  My lender, similar property type/area, was in the low to mid 5s and I was planning to buy down to 5.00% for like 1.3 points.  Sounds like I might be getting ripped off. They do about 50 loans/month, work with a ton of turnkey buyers, and I’ve already done four loans with them.  I value the relationship, but also want a good deal.  I asked about this in a thread I created previously, but one of the BP Moderators deleted it and told me I needed to post in the Marketplace for soliciting.  I was just trying to explore my options.  A little ridiculous if you ask me. Anyway, would you care to PM me who you’re using?  Thanks.  

@Zachary Schimenz It's obvious when consumers respond to these posts that they mean well, but they come in with a rate and maybe but not always fees that they paid and try to answer your question, which may or may not be similar enough to generate a price.  The fact is that the info you have provided could not generate a specific quote because it does not yet meet enough of the criteria lenders need to properly quote a rate and fee combo.   I applaud your lender for giving you a range in this case because there are too many variables including (mortgage market timing) that are unknown.  In other words, this same deal would price differently in now vs June, vs next January.  I'm surprised so many people said this was a bad deal or average deal.  I would say it could be a great deal.  Those fees to get an investment property loan in the 4's for rate sounds pretty amazing.  Most of the conventional non-owner occupied loans I see have much higher fees than that, with rates in that range.

Here's a chart to give you an idea of the factors that can affect your rate.