Conventional Loan for an Investment Property - Lender Fees

[Julian Inoue]

Hi BP,

I have a lender question I hope you can help me with. What should I expect to pay in loan fees when acquiring a loan for an investment property? I have great credit, zero debt and this will be my first conventional loan. All in, what do you pay the lender when getting a loan?

I also spoke to a lender in GA and asked for an estimate for a $250K property, and this is what they came back with:

- Originations Fees (~1.3k)
- ~$4k to secure a rate of 3.25%, ~$1.4 to secure a rate of 3.625, or $0 for a rate of 4.99%  (with a 20% down payment)
- Appraisal (~$700)
- Title fees (~$1.7k)
- Taxes and Government fees (~$1k)
- 1 year of insurance upfront (~$1.4k)

- 4 months of insurance and property taxes to hold in escrow for next years payments (~$1.4k)

So all in ~$12k, does this seem like a lot? I was expecting around $7k from reading books and looking at other people analysis.

Any input is appreciated.

Thanks!