Dashboard Forums 6. IMG app My quote has a 1% fee. What does that mean?

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  • Nicole Hamilbern
    Participant
    Post count: 4

    One of the loan officers I’m using gave me a quote with a 1% fee. Which he explained is a fee of 1% of the mortgage. How do I account for this in the app?

    nhamilton
    Keymaster
    Post count: 21

    Hi – I’ve heard about lenders lately who will offer a mortgage with a certain fee attached that is tied to the loan amount. This is often when you won’t quite qualify for their best products or it may be from a lender who is trying to reduce risk by tacking on fees. The 1% refers to a 1% of the total loan amount as a fee. In other words, in a loan that is $200,000, the 1% would be $2,000. These fees are usually “rolled in” which means added to the loan amount. So your loan amount would be $202,000 instead of $200,000. In our app, you would enter this loan amount that includes the fees in order to compare to other offers. Make sense? Let us know if you have additional questions.

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