Los Angeles Mortgages: Origination Fees & Loan Volume 2015-2017

In this article, we’ll specifically discuss the purchase and refinance of mortgage loans in Los Angeles County.  We start this series of articles with L.A. County.  With nearly 10 million residents, it’s the most populated county in America and is more populated than 43 countries in the U.S.

You will discover how many purchase and refinance loans were originated from 2015 – 2017 otherwise known as the recovery years of the housing market. You will also learn what the loan amounts were, what the whole loan volume was and how much in origination fees were paid from 2015 – 2017.

 

Where Did We Get the Data?

 

We took a detailed and exhaustive look at mortgage loan origination data based on the CFPB site in relation to the Home Mortgage Disclosure Act (HMDA), which is a United States federal law that requires certain financial institutions to provide mortgage data to the public.

The data we reviewed spans the years 2015 – 2017 and contains all residential purchase loans and refinances in Los Angeles County.  The data we retrieved includes originated loans for family dwellings, manufactured housing and multifamily dwellings.

The HMDA defines a multifamily property as a residential building which houses five or more families.  A structure is categorized as a one-to-four family property if it houses fewer than five families, it also has individual condominiums or units.

 

Total Number of Purchase Loans in Los Angeles County from 2015 – 2017

 

Real estate purchase loan activity has been relatively stable in Los Angeles County, with a total of 164,000 new purchase loans from 2015 – 2017 based on HMDA data. A total of 55,976 purchases were completed in 2017. The graph below will visualize the data for buy loans for this four-year time span.

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Average Purchase Loan Amount in Los Angeles County from 2015-2017

 

Though Los Angeles County isn’t the most expensive county in the state of California, a name San Francisco currently holds, the average purchase loan amount is still relatively high within the state and compared to other states in the U.S. In 2017, the data indicates that the average purchase loan amount in L.A. County was $500,801.  The chart below outlines the purchase loan amounts for the three-year time span.

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Purchase Loan Volume in L.A. County from 2015 – 2017

 

Whenever we conduct research like this for these types of articles, it never ceases to amaze us how large the sheer volume of mortgage loans shifting hands are every year in Los Angeles County.  The total mortgage loan volume from years 2015 – 2017 was $231 billion.  The table and graph below will reveal the loan quantity for purchase loans in L.A. County for the three-year time span.

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Total Number of Refinance Loans in Los Angeles County from 2015 – 2017

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Los Angeles County mortgage refinance action in 2017 was approximately half of what it was in 2015.  L.A. County saw a total of 325,654 mortgages refinanced from 2015 – 2017 according to HMDA data.  The year 2017 had 80,035 refinanced mortgage loans.  The chart below will visualize the data.

 

Average Refinance Loan Amount in Los Angeles County from 2015-2017

California has a tremendous amount of activity with regards to mortgage refinances.  There’s absolutely not any doubt it is an area of the mortgage business within the state. According to the data, the typical refinance loan amount in L.A. County was $447,671 in 2017.  The chart below outlines visualizes the normal mortgage refinance loan amounts to the three-year time span.

Our research to the data shows that refinance loan activity has been more than double that of buy loan activity in Los Angeles County when considering the total for all three years.  The whole mortgage refinance loan volume 2015 – 2017 was $143 billion.  The table and graph below will reveal the loan volume for purchase loans in L.A. County for the three-year time span.

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Origination Fees Paid For Mortgage Loans in Los Angeles County from 2015 – 2017

 

According to our research, we have found that the vast majority of new and existing homeowners use the services of traditional mortgage lenders and mortgage brokers to help them reach a new purchase loan or refinance their current home loan.  The majority of mortgage clients pay within a range of 0.50 – 2.5 percentage of the loan amount as the origination fee, depending on each borrowers unique credit qualifications.

For our intents and purposes, we’ll use the middle of the range to approximate that mortgage loan borrowers in Los Angeles County compensated 1.50 percent of their loan amount in origination fees.  With this figure, from the years 2015 – 2017, purchase loan borrowers paid a total of $1,617,021,660 at origination fees and refinance loan borrowers.

 

What Other Fees Arrive with a Mortgage Loan?

 

It is important to keep in mind that the charges we’ve discussed here are simply for the fees a borrower pays to broker or lender to originate the loan for them.  This lender/broker fee generally includes an administrative fee, an application fee, an underwriting fee, document preparation fees and other smaller fees that amount to about 1.50 percent of the amount of the loan, based on our estimations.

Every home loan process also has other fees in addition to origination fees, such as escrow services, title insurance, mortgage insurance, notary fee, appraisal fee, document recording fees and other smaller penalties also.  Based upon the size of your loan, the type of property and the specific state and county you are in, these fees can amount to a different 1 – 2 percent of the loan amount in addition to the origination fee.  You can use this closing cost calculator to get a better idea of what you can expect to pay when looking for a purchase mortgage or a refinance.

Are you interested in getting a Los Angeles Mortgage? The Truvaya mortgage experts are here to help. You can apply for a mortgage here by finishing your application here or by calling us at 866-638-0858.

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