DIYbanter - View Single Post - Locked in Mortgage Rate, but now the rate is lower. Question.

writes:

"Hopefully you haven't paid any
actual application fees (and reputable brokers shouldn't be charging
you for the honor of collecting a yield spread premium on your loan). "

He's paid a lock fee and is ready to close. How many people could be
in that position without paying an application fee? Most mortgage
companies, whether bank or broker charge non-refundable application
fees of several hundred bucks.

Then I must be some sort of magician because I haven't paid a broker
either a lock or application fee up front, non-refundably in any of
the 5 mortgage loans I've done.

And I'm also lookin at a major company's wholesale rate sheet, and
while there are underwriting, tax service, and flood cert fees (always
collected at closing for all the loans I've done), none are due up
front. The only up front, non-refundable fees I see are those for
extended (90 day) locks.

"Lock fees" and "application fees" I've been told by several folks are
junk fees a lot of brokers get away with. Perhaps there are wholesale
lenders that charge them to their brokers, but certainly not all.

The original poster should be able to get the lower rate from his
lender unless he's too close to closing, and too much of the final
paperwork has been prepared.

--
Todd H.
http://www.toddh.net/