Maximum Mortgage Loan Fees

There are two types of restrictions: legal restrictions and lender restrictions.

For legal restrictions, check with your state.

Many lenders will restrict the maximum amount of fees on a loan. An example is not allowing for more than 4% of the value of a property plus a $350 administration fee.

Some fees are capped not just as a percentage but absolute value as well. For example, some lenders will cap fees at $30K or $50K.

What is the typical fee range? It is usually 1%-4%, with the lower range being more common.

Keep in mind that the fees not only include points you pay upfront but additional compensation paid by the lender to a broker or rep (“rebate”).

Generally speaking, the lower the credit is and the worse the borrower’s options, the more likely it is that their fees will go up.

Remember that everything is negotiable, including your fees. If you think your proposed fees are too high, move on to some other lender(s).