Mortgage Fees

On a first mortgage for a loan of $150,000, the total fees were $2000. They were in the following categories: appraisal fee $350, credit report fee $100, tax service fee $50, loan processing fee $400, settlement fee $200, title exam fee $200, recording fees $250, tax research fee $50, courier fee $50, loan origination fee $350. These fees were all charged by a major mortgage company and were not negotiable.

When I was looking for a bank to handle my new mortgage, I shopped around and this was the lowest total that I found. Many of these fees are completely unwarranted, but they are a way for the bank to make extra money. While I was satisfied with the total overall price for the service, when I looked at the individual fee categories and the amounts, I was not happy, but there is no way around most of them. I was able to avoid certain other fees by complaining about them, but all of the fees that I mentioned were charged and had to be paid. Because I read a lot about mortgages and the process as I was going along, I felt like I was a pretty informed consumer, so the bank did not have to do much work to prepare and fund my mortgage. For that reason, while the price for the service was acceptable compared to other institutions, it is still unfair to the borrower.

Call every bank in your town and search the internet for the best mortgage rate and mortgage fees. Many people only look for a good rate and end up paying high fees, so it is important to compare both aspects of the loan. Also, challenge the bank on all of the fees and they should be willing to waive or reduce at least some of them, which will save you money.