General Category > Personal Finance

Costco mortgages

(1/5) > >>

tede02:
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.

Gregmal:
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.

tede02:
Really? How is the broker getting paid if they waive the origination fee?

Gregmal:
Selling the loan

tede02:
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?

Navigation

[0] Message Index

[#] Next page

Go to full version