No Closing Cost Refinance
Is a no-fee no closing cost loans fair?
The loan is a no money down 5.8% refinance where the broker will be $ 14k in brokerage fees from the lender. Is this savings that should have gone down to the consumer, or is it a typical percentage paid to mortgage broker?
A mortgage broker working on commission. This is paid by the lender. There is no part of this tax, which belongs to the borrower. A typical fee is 1% of the face amount of loans but it could be something that broker and lender agree on. It's like buying a car. The price of the car is what the buyer agrees to pay and what they sell comes in compensation between him and the dealer.