Columbus Mortgage Loans: What are delivery fees?
ByColumbus and Central Ohio Mortgage Loans: What are delivery fees?
Many customers looking for a conventional refinance or purchase find the rate they are looking for, terms they like and are ready to go only to be blindsided by a new fee that seemingly came out of nowhere a so called delivery fee.
Columbus Ohio Loan Photo: Delivery Fees are Pigs
Delivery fees are secondary market fees associated with the risks a mortgage transaction presents. Factors such as the type of property, the amount borrowed against the value of the property, credit history, debt-to-income ratios and other similar items create a certain level of risk with each mortgage. These fees are finance charges and are incorporated in the Annual Percentage Rate. Delivery fees are payable at closing.
The following factors can trigger a delivery fee:
- Credit Score (anything below 740)
- Cash out (paying off a second mortgage or equity line is now considered cash out if it was not used in the purchase of the home)
- Loan to value
- Occupancy
- Combined loan to value (if closing 1st and 2nd or subordinating second)
- Number of units
Delivery Fee Matrix:
| Credit Score |
<=60% |
>60%&<70% | >70%&<75% | >75%&<80% | >80%&<85% |
>85% |
| >740 |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
| 720-739 |
0.00% |
0.00% |
0.00% |
0.25% |
0.00% |
0.00% |
| 700-719 |
0.00% |
0.50% |
0.50% |
0.75% |
0.50% |
0.50% |
| 680-699 |
0.00% |
0.50% |
1.00% |
1.50% |
1.00% |
0.75% |
| 660-679 |
0.00% |
1.00% |
2.00% |
2.50% |
2.25% |
1.75% |
| 640-659 |
0.50% |
1.25% |
2.50% |
2.75% |
2.75% |
2.25% |
| 620-639 |
0.50% |
1.50% |
2.75% |
2.75% |
2.75% |
2.75% |
| <620 |
0.50% |
1.50% |
2.75% |
2.75% |
2.75% |
2.75% |
| These changes to indicator Score/LTV delivery fees does NOT apply 15-year Fixed | ||||||
| Cash Out Refinance Delivery Fee- | ||||||
| Credit Score |
<=60% |
>60%&<70% | >70%&<75% | >75%&<80% | >80%&<85% | |
| >740 |
0.000% |
0.2500% |
0.250% |
0.500% |
0.625% |
|
| 720-739 |
0.000% |
0.6250% |
0.625% |
0.750% |
1.500% |
|
| 700-719 |
0.000% |
0.6250% |
0.625% |
0.750% |
1.500% |
|
| 680-699 |
0.000% |
0.7500% |
0.750% |
1.375% |
2.500% |
|
| 660-679 |
0.250% |
0.7500% |
0.750% |
1.500% |
2.500% |
|
| 640-659 |
0.250% |
1.2500% |
1.250% |
2.250% |
3.000% |
|
| 620-639 |
0.250% |
1.2500% |
1.250% |
2.750% |
3.000% |
|
| <620 |
1.250% |
2.250% |
2.250% |
2.750% |
3.000% |
|
| Non owner Occupied Delivery Fee – <=75% 1.75% | ||||||
|
|
|
|||||
| # of Units- | <60% | >60%&<70% | >70%&<75% | >75%&<80% | >80%&<90% | |
|
#2 |
1.00% |
1.00% |
1.00% |
1.00% |
1.00% |
|
|
#3-4 |
1.00% |
1.00% |
1.00% |
1.00% |
Not Eligible |
|
| Balloons | ARMS 90.01-95 LTV ADD .25 | |||||
| 80.01-90 LTV 0 PTS / 90.01-95 LTV 1.00 PTS | Int Only 5/1 90.01> .50, <90 .25 | |||||
| Mortgages w/ 2nd | Non-Initial Interest Mtgs | Initial Interest Mtgs | ||||
| LTV | TLTV | Credit Score | Credit Score | |||
| Ratios | Ratios |
<720 |
>720 |
<720 | >720 | |
| 75/20/5 | >65%&<75% | / >90%&<95% |
0.50% |
0.25% |
0.75% |
0.50% |
| 80/10/10 | >75%&<80% | / >76%&<90% |
0.25% |
0.00% |
0.50% |
0.25% |
| 80/15/5 | >75%&<80% | / >90%&<95% |
0.50% |
0.25% |
0.75% |
0.50% |
| 90/5/5 | >80%&<90% | / >81%&<95% |
1.00% |
0.50% |
1.25% |
0.75% |
Columbus and Central Ohio Mortgage Loans: How to avoid delivery fees.
Unfortunately some of these fees are difficult to avoid, however there are a few ways to avoid the fees.
- Shorten term from 30 to 15 years (no credit score fee on 15 year loan)
- Do your loan without any cash out
- Do what you can to increase your credit score
Please contact me with any questions. It is good to know what to expect before you begin the process.
