By Louie Latour
If you are using the Internet to refinance your mortgage, you need to know about hidden fees that mortgage websites like Lending Tree charge for arranging your loan. Lending Tree claims there is no fee for using their service; however, take out a new mortgage from Lending Tree’s website and you will pay $1,300 for their services. Here are several tips to help you avoid paying unnecessary junk fees like the one charged by Lending Tree when mortgage refinancing.
Mortgage Refinancing - Read The Fine Print First
Before you fill out that contact form with your name and address, take a few minutes and read the licenses and disclosure statement at the bottom of the page. Take a look at Lending Tree’s licenses and disclosure statement and you find that while they claim there is no fee for using their service, they will receive a fee of up to $1,300 from your lender for arranging your loan.
While this fee is paid by the lender in the form of a “Computerized Loan Origination Fee,” the charge appears on your Good Faith Estimate and you will pay the fee at settlement. Mortgage refinancing websites like Lending Tree walk a fine line of lying to their customers. How do they get away with it? Very few homeowners read the licenses and disclosures statements found on these mortgage refinancing websites.
Mortgage Refinancing - Beware Broker-Banks
Another problem with mortgage refinancing online comes from websites like eLoan, which have no disclosure statements on their websites. Websites like eLoan are not required to disclose any of their markup because they operate as Broker-Banks, and are exempt from the Real Estate Settlement Procedures Act. Broker-Banks close on their mortgage loans in their own company’s name instead of the name of a wholesale mortgage lender. If your loan representative tells you they close in their own companies name you know that you’re dealing with a Broker-Bank like eLoan. Never choose a Broker-Bank when mortgage refinancing.
You can learn more about mortgage refinancing while avoiding costly mistakes by registering for a free six part video tutorial.
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Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this free video tutorial: "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
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