Mortgage Estimate Anxiety

[Mike Montanye]

We are under contract for our first rental. We contacted our lender and started the mortgage process.

We explained to them that we were looking for a 20% Down loan. We were told that the fees associated with that loan would not make sense at that time (one week ago) and that we should wait until the market permitted to lock in that loan.

We received and signed a loan estimate at 25% Down to order the appraisal.

This estimate put Origination Fees as follows:

2% of loan amount (Points) - $2,393

Processing Fees - $650

Underwriting Fees - $995

We just received another to sign to lock in our rate, but this one has the same fees as follows:

3.875% of loan amount (Points) - $4,635

Processing Fees - $650

Underwriting Fees - $995

Why have these fees jumped that much?

Origination is only lender fees, correct? This doesn’t even lower the interest rate, right?

Any info could help. Feeling a bit lost at the moment and we received the email at 4:27pm and didn’t see it until after 5pm. So now it’s too late to have a conversation with the contacts at the lender’s office.

Just a Noob freaking out, or legitimate concern?

Thanks.