Avoiding High Fees

How to Avoid Paying High Mortgage Loan Fees

The best way to avoid high fees is to be aware of the costs that are negotiable and reasonable. Some mortgage brokers and banks will charge fees that can easily be removed if you just ask. Two examples of these fees are mortgage broker fees and application fees. The more competitive brokers will not charge these “junk” fees. Also, be sure that charges for items such as credit reports and appraisals are within reason. The average credit report ranges from $5-$20 and the typical appraisal costs between $300-$450 depending on the type of home and type of loan.

Finally, take notice of the loan origination fee that the loan officer is charging. This fee should be between 0% and 1% of the total loan amount. If you are being offered a very low interest rate, expect a 1% loan origination fee. After all, how else is your broker supposed to be compensated? Anything above a 1% origination fee should be questioned and it is probably a good idea to look into getting another quote from someone else.

The Good Faith Estimate is the document your loan officer should provide you that itemizes all fees associated with your new loan. The real estate settlement and procedures act (RESPA) requires that this document be provided along with other loan disclosures within 3 days of taking an application. If you are in the process of refinancing or purchasing a home and your "GFE" does not look right, please contact an approved UtahMortgageNetwork.com mortgage broker by clicking HERE.