If you are in the process of mortgage refinancing on the Internet, there are many online junk fees you need to be aware of. Careful comparison shopping and reading the fine print on mortgage websites will help you avoid overpaying when mortgage refinancing. Here are several tips to help you avoid mortgage junk fees when mortgage refinancing online.
Whenever you visit a mortgage site on the Internet, the first thing you need to look for is the Licenses and Disclosure statement. Mortgage sites operating as Internet list brokers or online mortgage brokers like Lending Tree are required to disclose all of their fees in these disclosure statements. If you visit a site like eLoan that does not have a disclosure statement, these sites are operating as Mortgage Broker Banks and are therefore exempt from the Real Estate Settlement Procedures Act that protects homeowners from predatory lending practices. Would you ever consider taking out a mortgage from any company that doesn't have to play by the rules?
Once you've eliminated the Broker Banks like eLoan from your list of mortgage refinancing websites, pay close attention to the disclosure statement for any hidden fees. Lending Tree for example, claims they do not charge you a fee for their services; however, read the fine print in their disclosure statement and you'll find filling out the form on Lending Tree's site will cost you $1,300 when closing on your mortgage.
The best way to compare loan offers from Internet mortgage sites is to request a copy of the Good Faith Estimate for each loan you consider. Mortgage lenders are legally required to provide this document within three days of receipt of your application; however, most mortgage sites will provide you a copy if you ask for one. This Good Faith Estimate allows you to perform a line-by-line comparison of the mortgages you consider.
There are several Junk fees you need to look for on the Good Faith Estimate. Do not agree to pay anything that resembles a "Broker Administration Fee," "Broker Courier Fee," "Loan Submission Fee," "Application Fee," or "Lock Fee. If you are unsure about any fee found on your Good Faith Estimate, ask your loan representative to explain it to you. If the fee is paid to your loan representatives company, it's probably a junk fee and you should negotiate that fee out of your costs.
You can learn more about mortgage refinancing without paying junk fees with a free, six-part mortgage tutorial.
To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this free video tutorial: "Mortgage Refinancing - What You Need to Know," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com.
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