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What's happening with home prices in the 100 largest metropolitan areas? See HSH's updated "Home Price Recovery Index" to find out!

Is this loan fee normal?

HSH.com

Q: My bank wants a 1% origination fee to close on a construction loan. Is this outrageous or "normal".

A: It's probably close to normal. Most construction loans are short-term (usually a year) where you pay interest only, often at the Prime Rate plus a margin. The 1% fee may be credited toward closing costs on any permanent mortgage you obtain from the bank, so ask whether it can be applied.

More help from HSH.com

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