Fees

It is my goal to provide Education and Quality service at a competitive low cost to the Borrower. Most Loan companies have the same pricing and loan products . The difference is in the Planning, Education, and Relationship.

MegaStar Financial Cost

Processing

This cost is for the processor. The processor’s duty is to make sure that the file gets sent to the underwriter correctly in its stacking order. Each file has a stack of paperwork that is about 2 inches thick and needs to be organized for the underwriter to review. The processor also orders all the verifications of employment.

Underwriting

This cost is for the Underwriter that underwrites the file. On average an underwriter will spend 5-10 hours on the file from beginning to end. It is their job to make sure the borrower qualifies and fits within the investors guidelines.

Administration

This cost is for all the other staff and supplies that we employ in order to ensure a very fast and easy close and at the same time be compliant with all the state and federal laws.

FHA Loan Fees

Processing - $550
Underwriting - $825

USDA Loan Fees

Processing - $550
Underwriting - $825

VA Loan Fees

Processing - $0.00
Underwriting - $0.00

Conventional Loan Fees

Processing - $550
Underwriting - $825

Appraisal Cost

Investment Purchase

If you are buying an investment house and plan on receiving income from renting the house out some time the underwriter will ask for a rent roll from the appraiser. The appraiser charges another $125 for the Rent Roll. If the rental income from the investment property is not needed to qualify then it is okay to have a Conventional Loan Appraisal.

These cost’s are based off the average in Redding. If we are ordering out of the area the appraisal cost could be different.

Conventional Loan

Cost: $375

FHA Loan

Cost: $450

Investment Loan

Cost: $500

Title Cost

Here are basic title fees that you might see charged for title insurance and escrow service from the title company. Title insurance can be more or less depending on the loan amount. In this example, $725.00 is charged for a loan amount of $204,000.

Closing/Escrow Fee $450.00
Doc Prep Fee $50.00
Notary Fee $40.00
Title Insurance $725.00
Endorsement Fee $75.00
Overnight Delivery $35.00
Recording Fee $75.00
Total $1,450.00

Mortgage Insurance Premium (FHA Loan)

The MIP is a requirement from the government. There are two parts to the Mortgage Insurance.

Monthly Mortgage Insurance

This is a monthly charge and is calculated by multiplying the loan amount by 0.9%, then dividing by 12/months. Example: 200,000 x 0.9% = $1,800 / 12 months = $150/month

Mortgage Insurance Premium

This is a one time charge that gets financed on top of the loan amount and is calculated by multiplying 1% to the loan amount. Example: $200,000 x 1% = $2,000 so the total loan amount after the MIP is financed is $202,00.00

Zero Cost Loan

This is an option that every borrower has when either purchasing or refinancing! Here's how it works:

Usually by paying up front closing cost the consumer is able to get the best possible Interest Rate. We can offer the "Zero Cost Loan" by raising the interest rate by .25 – .75%. When I sit down with my clients we determine if this makes sence for them or not. Also there is the oppurtunity to buy down the interest rate to the desired rate the consumer is wanting. This makes sence when the consumer needs to keep the payment as low as possible in order to fit with their specific budget. Here is what the "Zero Cost Loan" looks like:

Origination Fee $0.00
Megastar Financial Fees $0.00
Total $0.00

Appraisal and title have to be paid. The title company and the appraiser very rarely will reduce their fees.

Pete Metz, Mortgage Banker