Which mortgage fees are negotiable?

Fees in Section A of your Loan Estimate, such as origination, processing, and underwriting fees, are highly negotiable. You can also save money by shopping for title insurance providers listed in Section C.

Is a higher APR a bad thing?

A higher APR compared to the interest rate indicates higher upfront closing costs. While not always 'bad,' you should compare the APR of multiple lenders to find the lowest total cost of borrowing.

What is a 'Top 5%' mortgage deal?

A Top 5% deal typically represents a quote with zero lender-controlled origination fees and an interest rate that is at or below the current market par rate for your specific credit profile.

Mortgage Quote Analyzer – BiggerPocketsMoney

Mortgage Quote Analyzer: Is Your Loan Estimate a Good Deal?

Most home buyers focus only on the interest rate, but the true cost of a loan is hidden in the fees. Lenders often lure borrowers with a low “sticker” rate while padding their profits with high origination charges and processing fees.

Our Mortgage Quote Analyzer allows you to strip away the marketing and see exactly how your loan estimate stacks up against current market benchmarks for your specific credit profile.

This Calculator is in BETA: Please Email Scott@biggerpocketsmoney.com with any suggestions for improvement or if you spot any errors.

How to Analyze Your Loan Estimate (LE)

To use this tool, have your official three-page Loan Estimate document ready. We analyze the specific sections that lenders control:

Section A (Origination Charges): These are the fees the lender charges you to get the loan (Points, Application, Underwriting). This is the primary area where you can save money.
Sections B & C (Services): These cover third-party costs like appraisals and title insurance. While some are fixed, “Services You Can Shop For” (Section C) offers another opportunity for savings.
The APR (Annual Percentage Rate): This is the most important number. It combines your interest rate and your fees into one “true” cost of borrowing.

Understanding the Benchmarks

We compare your quote against thousands of real-time data points to categorize your deal:

Top 5% (Exceptional): Usually represents a “Par” rate with zero lender fees. This is the goal for savvy shoppers.
Top 25% (Great): A highly competitive offer that beats the vast majority of retail bank quotes.
Average: A standard “middle-of-the-road” quote. It’s fair, but there is likely room to negotiate or shop around.
Expensive: Your fees or rate are significantly higher than the current market average for your credit tier.

Frequently Asked Questions

What is the difference between Interest Rate and APR?

The interest rate is the cost to borrow the principal. The APR includes the interest rate plus lender fees, points, and other costs. If a lender offers a 6% rate but a 6.8% APR, they are charging high upfront fees.

Can I negotiate the fees in Section A?

Yes! Origination fees, processing fees, and underwriting fees are almost always negotiable. If your quote comes back as “Expensive” in our analyzer, use that data to ask your lender to match a competitor’s lower fee structure.

Does my credit score really change my closing costs?

Absolutely. Borrowers with “Excellent” credit (760+) not only get the lowest rates but often have access to loan programs with lower origination charges. Our tool adjusts the “Average” benchmark based on your specific credit tier to ensure a fair comparison.