How Do I Pay the Lowest Mortgage Fees?

Mortgage transactions are costly. There’s really no way to avoid fees on your mortgage unless you are doing a no closing cost loan. Even then, you pay for the no closing cost loan with a higher interest rate. If you’re smart about your mortgage and care about getting the lowest mortgage fees, you’ll pay close attention to the fees that are listed on your good faith estimate.

If you are working with a mortgage brokerage, some fees will go to the brokerage itself. Some will go to the lender. Other fees will go to third parties such as the appraisal or title company. Certain fees are negotiable and others are not. You will usually find that one of the largest fees you will incur during a mortgage transaction is the origination fee. If you want to avoid paying the origination fee, you’ll end up paying a higher interest rate. Another large fee you will find is title insurance.  In almost all instances, that is not a negotiable fee.

If you know which fees are negotiable and which are not, you’ve got a better chance at paying less money when it comes time to close on your loan. There are also fees that are sometimes referred to as “junk” fees that can be removed entirely if you just ask. Two examples of “junk” fees are application fees and mortgage broker fees. Sometimes those fees are actually credited back to you at closing in which case they are not “junk” fees, but rather a means for a broker or bank to cover up front costs associated with your loan transaction such as the appraisal. Refer to the lists below for a general breakdown of negotiable and non-negotiable fees.

Typically Negotiable:

• Loan Origination Fee
• Application Fee
• Mortgage Broker Fee

Non-Negotiable:

• Prepaid Expenses
• Appraisal Costs
• Title Insurance and Escrow Costs
• Recording Costs
• Lender Fees Such as Underwriting Costs
• State Tax Stamps
• Misc. Third Party Costs

We require all of our mortgage partners to cap the fees and interest rates they charge you in order to make sure you get the best mortgages possible. Speak with a BeatMyBroker.com mortgage expert today.

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