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Costco mortgages

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Has anyone out there obtained a mortgage through Costco's mortgage program? The origination fees are supposedly capped at $350 or $650 for Coscto members. That sounds quite attractive at face value but I'm naturally weary of something that sounds like an almost too good deal.

Ive never used Costco for this, but in my experience with mortgages, any decent broker will waive both the origination fee(typically 1% of LV) and application fee (about $500-1000). Most of the time all you have to do is ask. Other times, they'll waive them contingent upon the loan closing.

Really? How is the broker getting paid if they waive the origination fee?

Selling the loan

Interesting. I don't know much about the behind the scenes of mortgages. Am I correct in assuming a bank/insurer or Freddie/Fannie buy the mortgages at a premium to capture the spread over treasurys? The mortgage originator then captures the premium as profit?


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