Friday, September 9, 2011

What is the maximum origination fee in Florida?

What is the maximum origination fee in Florida?

According to RESPA (Real Estate Settlement Procedures Act), the maximum origination fee in Florida is 8% of the loan amount. However, although origination and discount points are usually distinguished from other origination fees, such as title and processing fees, per RESPA all those fees count towards the 8% limit.

To summarize, in Florida the maximum origination fee is limited by a cap of 8% and it includes loan origination and discount points, plus additional loan processing fees.

Usually, the maximum origination fee in points doesn't exceed 2% of the loan, and discount points depend on how much off the rate the borrower wants to buy. If rates tend to be low, discount points are rarely bought upfront.

With a no-cash loan, some of those fees can be rolled into the loan, but if the cash you paid in closing is less than what you paid in origination fees, origination and discount points will not be tax deductible.

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