Is this loan too expensive?

[Steven Barr]

I just purchased an investment property for $91,250 with 20% down on a FNMA backed loan at 7.625% interest and was charged the following:

3.909% loan origination: $2,854

Appraisal management fee: $85

Processing Fees: $800

Underwriting Fees: $850 

Appraisal Fee: $525

Credit Report: $120

Final Inspection: $150 

Total Lender Closing Costs: $5,384 

**this seems absurdly high on a $73,000 loan. That comes out to 7.37% (and we haven't included attorneys fees in this)

Is this what I should be expecting to pay on these type of loans, or do I need to find a new lender?

Thanks BP!

[Nathan Grabau]

This does not seem too far off. If you take the points down, how would that impact your rate?

This is part of what is really hard about low cost properties, transfer/ loan costs have a much larger impact on your rate of return.