Many mortgage brokers add fees to your loan that aren't necessary for the loan to be processed. Sometimes, either the fee itself isn't needed or it's too high. If you know about mortgage loans and the fees that come with them, you may be able to negotiate for lower fees.
Here are some examples of mortgage fees you might think are too high:
Processing fee: The lender pays a fee to the mortgage broker, and the borrower also pays a fee for "processing" the loan. Most of the time, you can't avoid paying this fee, but brokers who charge more than $1,000 are being very expensive.
Administrative fee for real estate agent: Many real estate agencies now charge both buyers and sellers a fee of around $200. This is on top of any real estate commissions that the agents might get. Talk to your agent and see if this fee can be taken away.
Mortgage Origination Fee: The origination fee is basically what the broker charges for getting the loan. It is usually between 1% and 2% of the loan amount. This is a common fee for a broker's work, but 2 percent is too much unless you have a very complicated loan.
The information that was available when this article was written was used to estimate these costs. If you think you're being overcharged for something, talk to your broker about negotiating lower fees. If you know a lot about your mortgage loan, you might be surprised at how willing a mortgage broker is to work with you. Compare different brokers and lenders is also a good idea. Ask for quotes from several different brokers and lenders. This will give you more negotiating power to get the fees lowered.
Disclaimer: These suggestions are not financial advice for you as an individual. Before you do anything based on what you read here, you should talk to your own financial advisor.
