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Wondering about where mortgage rates are headed? Check out our latest Two-Month Mortgage Rate Forecast.

Wondering about where mortgage rates are headed? Check out our latest Two-Month Mortgage Rate Forecast.

Is this loan fee normal?

Q: My bank wants a 1% origination fee to close on a construction loan. Is this outrageous or "normal".

A: It's probably close to normal. Most construction loans are short-term (usually a year) where you pay interest only, often at the Prime Rate plus a margin. The 1% fee may be credited toward closing costs on any permanent mortgage you obtain from the bank, so ask whether it can be applied.

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
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Q: What loan amount does a mortgage need to be for it to be considered a Jumbo Loan?
JAN 09, 2023
A:

This question used to have a simple answer, since there was a "bright line" definition -- the conforming loan limit....

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Q: Why are home equity loan rates so high?
JAN 04, 2023
A:

There are several reasons why second mortgages and HELOCs have high interest rates.

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Q: Should we pay off our mortgage?
OCT 04, 2022
A:

Whether you should pay off your mortgage or not sounds like a simple problem with an easy answer... but it's not.

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