Unwanted Mortgage Fees

The process of doing a transaction in real estate is a long and complex one. There are numerous forms to sign and hundreds of real estate terms to learn. There is always a mountain of paperwork involved and most just want to get it over with. After all, there are not many people who deal in real estate all that often. In fact, a majority only does real estate investing once or twice during the lifetime.

It is strictly advisable that you make an effort and try to understand what you are dealing in. Get your insurance agent and mortgage broker to explain everything to you. Learn about all the new terms of real estate investing. Find out all the details about where your money is going. Most of the people lose out on a lot of money during the closing deals. You should always take extra care to ensure that you are not paying more than what is required.

Closing Costs:

Closing Costs

There are many potential expenses when you are purchasing or financing real estate. All of these expenses are put down under the term of ‘closing costs’. These are of two types, recurring and non-recurring.

Closing costs could also include expenses such as the Federal Housing Administration (FHA) fees, the Rural Housing Service (RHS) fees, the Veteran’s Administration (VA) fees, a land survey that is done to authenticate the boundaries of the property, a flood determination fee that investigates if the property is in an area that is prone to flooding, title charges, endorsements, courier fees, transfer tax, optional home warranty and a recording fees.

Expected Costs:

The fees vary a great deal. They depend on the location of the property, the lender and the price of the house.

Junk Fees:

The junk fees, or garbage fees as they are often called, are a part of every mortgage. You can never completely avoid them but it advisable that you ask questions about them and have them lowered.

These fees are found under the categories of Mortgage Rate Lock fee, Application fee, Loan Processing fee, Underwriting fee and Broker Rebate.

All-in-one Fees:

All-in-one Fees

Some lenders are now offering flat all-in-one fees. This is to make sure that the customer does not have to get into all the hassle of closing costs. You have to ensure that you are choosing the right package of closing costs only. It is generally expected that you will have to spend about three to five percent of the property’s price on the closing costs.

You can always choose to get an all-in-one package to avoid despairing over every single fee one at a time. One thing you can do is compare costs from a handful of lenders. This will give you a good estimate of what you should be doing.


When dealing with the finances in real estate, you need to be very careful. You need to find a way around all the junk fees and also lower the closing costs. It pays to do a little research in your area and then make the final choice.


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