junk fee in mortgage

Guest

I don't want to pay any unnecessary fees on my mortgage? Kindly suggest How can I avoid these junk fees on a mortgage?

Caron · Posted: Thu Oct 06, 2005 5:48 pm Post subject: RE:

Hi Lauren,

Welcome to MortgageFit forum.

A junk fee is the excess charge asked by a lender which most borrowers should rather avoid. There are certain fees charged by the lenders while getting a mortgage. But sometimes they charge fees that seem to be higher than that is expected. These fees may be termed as junk fees.

To avoid the junk fee you may follow some simple steps.

Do not respond instantly to any advertisement that quotes a half rate or even below the lowest price offered by anyone else. Just ask yourself whether this mortgage deal looks favorable at all.
Try to find out the type of loan package you are interested in. This will depend on the type of requirement you have, your present financial condition, your credit score etc.
Note down the information on the loan of your choice. These can be the current interest rate, points charged for the loan, fees charged by the lender and other related information.
Try to monitor the market during the period when you are going for the loan to track any change of rates.
Contact about 10 lenders to compare their reputation with the rates they charge.
Don't forget to ask the lender the types of fees he charges to the borrowers. Ask him to provide a written list of all fees to be paid by you.

If you work out these details before going for a loan, you will be able to avoid any junk fee completely or at least a part of it.

Hope this information will help you.

Regards,
Caron

Guest

Hi,

Junk fees are those types of fees which are charged by the lenders but they are not included in points. The sad part of these kind of fees are the only lenders who advertise these fees along with there interest rates and points are those who don?t charge any junk fees. There is very less chance of customers getting any information on total junk fees while shopping for a loan.

Thanks,
Jerry

suyog · Joined: 23 Sep 2009 Posts: 44 7.86 Dollars($)

Hi lauren

Welcome to mortgagefit forum;

There are certain fees chareged by the lenders while getting a mortgage. But sometime they charged fee that seem to be higher than that is expected. these fees may be termed as junk fee.
There is very less chance of customer getting any information on total junk fees while shoping for a loans. To avoid junk fees for following points. Dont't forget to ask the type of fees he chareged to the borrowers.Ask him to provide a written list of all fees to be paid by you.contact 10/12 lenders to campare there reputation with the rate they charged.
Thank's

gmakerley · Posted: Thu Nov 05, 2009 10:22 am Post subject:

"junk fees" as they are called are processing, underwriting, etc. fees. of course, these are the main methods by which an originator gets paid. a point is woefully inadequate to compensate a loan officer for the time and energy spent working with clientele (plus realtors, inspectors, appraisers, lawyers, processors, paralegals).

gmakerley · Posted: Thu Nov 05, 2009 10:23 am Post subject:

actually, they ought to call a $20 haircut a junk fee. now i'm only talking about a haircut, not the wash, set, blowdry, color, style, etc. that deservedly costs more than that.

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