Garbage Fees And Online Mortgage Brokers

Online Mortgage Broker

So you've decided to refinance your home, and you're going to use an online mortgage broker. You've chosen a well-known company, and you feel confident you're not going to be ripped off and end up losing your savings, or worse yet, your home.

There are many reputable online mortgage companies, and the Internet can save you time and money when refinancing your home.

However, there are some brokers who will charge you fees you shouldn't have to pay, and who are not very forthcoming about how much they're charging you or what the fees are for.

If you've ever gone to one of the web sites where you can fill out one form and have multiple lenders compete for your loan, you should be aware that many of these sites will charge you money for allowing you to fill out their contact form and find lenders for you to choose from.

Many companies also charge "computerized origination fees" for allowing you to refinance your home through their web sites.

There are also smaller junk fees such as application fees, lock fees, and broker courier fees.

If you're not sure what fees you're going to be charged by an online broker, ask, and also check the Licensing & Disclosure statement on the web site.

If a fee sounds suspicious to you, check with local mortgage brokers to see if this is a reasonable fee.

Some people will say that the only way to avoid paying these unreasonable, and sometimes legally questionable, fees is to stay away from online mortgage brokers.

That really may be a case of throwing out the baby with the bathwater, in that there are reputable online mortgage brokers.

Finding a good broker online is a matter of asking for referrals from people you know, doing due diligence on every broker you consider, and finally doing the research to find someone who has a good reputation and does not charge garbage fees like "computer origination."

Once you have found a good online mortgage broker, you can do your part to eliminate the bad brokers by speaking out about your broker, giving him or her good word of mouth advertising, and making clear to people you talk with that your mortgage broker does not charge useless fees, and some other brokers do.

It is not be true that online brokers are a bad lot in general, and by locating the good brokers and speaking out for them, you can contribute to the overall health of online refinancing.

Remember, there are reasonable fees for brokering a mortgage refinance, and there are garbage fees no one should have to pay.

Look carefully at what fees your mortgage broker charges before signing up, and never fill out a form on a mortgage broker's site without finding out how much that form will cost you.

There are good guys in online brokerage, and they do not charge garbage fees to line their own pockets while emptying yours. The fact is, the reputable brokers are able to get enough business without ripping off their customers.