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Updated about 7 years ago on . Most recent reply

Am I getting ripped off with my closing cost?
Hi BP,
I’m currently in the process of remodeling my second house with a 2 in 1 loan (construction and refinance). I’m planning on adding square footage and several bathrooms.
Once the construction is complete the refinance mortgage will be 88% of the future value of the home. Here is what the bank is charging for the loan,
Origination Fee (1%) - $4,050
Closing Cost - $1,715
Title Fee’s - $2,800
Total Cost $8,565
The Mortgage will be at 5% interest rate.
Are these fees too high? They originally wanted an origination fee of 2% but when I said it was too high they easily went down to 1% with a required 5% Mortgage interest rate. This is a local lender in Salt Lake City Utah.
Am I getting ripped off or are these fee’s normal? What do you think?
Thanks!
Most Popular Reply

@David Coronado Shop around a little and see what other banks will do. Local banks are usually more flexible, but they typically have higher rates and fees.