Refinancing your home is a big decision. When done for the right reasons, with the assistance of a reputable mortgage broker, refinancing your home can be a great way to save money and even put cash in your pocket. Many people utilize online mortgage brokers to handle their home refinance needs. Using online refinancing options can result in a savings of time and money, assuming that the company you select to handle your needs is a reputable one.
Even though there are many reputable mortgage companies doing business online, there are also a number of companies who seek to take advantage of consumers with junk fees. If you find yourself dealing with a company that starts adding on fees that weren’t disclosed in the beginning, you may be dealing with an organization that isn’t reputable. Such companies often charge consumers fees that the consumers should never have to pay,
Examples of Junk Fees
Some websites that allow consumers to fill out one form so that a number of lenders can bid on the opportunity to provide your loan actually charge a fee to fill out their contact form and use their services.
Some companies will add on “computerized origination fees,” claiming that such fees cover the costs of allowing you to use their websites to apply for refinancing. This junk fee is the equivalent of a grocery store charging you a cover charge when you walk in the door to cover the costs of using their store to find groceries to buy.
Other junk fees to watch for include application fees, charges to lock in an interest rate, and courier fees.
Protecting Yourself From Junk Fees
Don’t rule out working with an online mortgage broker just because some of them are not reputable. Asking people you trust for referrals of reputable online lenders can be a good way of finding a reputable broker. As a consumer, you need to be informed about your rights and you need to ask the right questions when selecting a mortgage company.
When dealing with an online mortgage broker, read the Licensing & Disclosure statement on the company’s website. All fees should be disclosed in that statement. It is also a good idea to ask the representative with whom you are working to disclose all fees to you.
If an online mortgage broker is asking you to pay a fee that seems like a junk fee, ask a local mortgage broker if the fee is reasonable or not. If a company charges a fee just to fill out a form on its website, you should keep looking for another lender.
When selecting an online lender, ask for references. Learn everything you can about the company’s background so that you can be certain you are not working with a shady organization.
When you find a good broker, by letting other people know about him or her, you can play a role in helping to reduce shady online lenders by spreading the word about the reputable lender that you found. When you refer your colleagues to reputable online lenders, you are playing a role in making the online lending industry better and safer for consumers.