I am working with a lender on an FHA loan in Orlando, FL. The rate is 5.59 and the Good Faith Estimate states that the lender is asking for !.000 for a loan origination fee and 1.000 for a loan discount. Does this mean my 5.59 percent is now 7.59 percent? Is this allowed on an FHA loan? What is the likelyhood of getting a smaller fee elsewhere? I have a list of approved lenders to use- should I contact more and get other estimates. Help!!! This is my first home purchase and I’m not sure what to do. I have 20% to put down from grants and gift funds. The good faith estimate still lists mortgage insurance…shouldn’t this be unnecessary with 20% down?