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Courtney Said:

Mortgage lender application fee up front?

We Answered:

I think it's a scam.

Maureen Said:

Have mortgage lenders put up arrangement fees?

We Answered:

Mortgage arrangement fees have risen massively over the last few years. Rates on tracker mortgages have trebled in the last year to an average of £750, according to some reports, and fixed-rate mortgages now routinely come with fees of £1,000 or much more.

Cecil Said:

what is meant by lender-based loan fees in the mortgage analytics industry?

We Answered:

According to mortgage analytics firm Heitman Analytics:

Lender-Based Loan Fees —

Fees collected by banks and lending institutions to cover lender’s costs associated with originating the loan for the borrower. Unlike some loan fees over which a lender has no control, banks can set this fee at whatever they please, and thus compete to offer the best deal for potential borrowers.

Learn more mortgage analytics lingo at http://blog.heitmananalytics.com

Chris Said:

Mortgage loan with Stated income, lender fees.?

We Answered:

Going for a second mortgage for the additional 15% down ( if you are putting 5% down) is called a piggyback mortgage, and eliminates the need for PMI. However, these deals are much harder to come by, now that the credit crisis has come to U.S. banks/lenders. Also, the second mortgage is at a higher interest rate, and some are for a shorter time period than your first mortgage. So, know all the facts before you sign anything.

If you get PMI, you have to ask the Lender to remove it when you achieve 20% equity in the property. Given the fact that property values are dropping, you could be paying PMI for many years. And, it is not tax deductible, So, let's say you get PMI at $150 per month, and have to pay it for 10 years ( which is a reasonable assumption-that was the average amount of time PMI stayed on an account, before the real estate bubble drove prices up between 2002-2006). You will have wasted $18,000.00 to get into a property that will potentially decline in value for several years more. ( Please, read the forecasts for how long it is estimated it will take to clear out the current inventory.)

Look for a property you can afford. Either spend less, or save more to get a conventional 80% mortgage, where you put down 20%. It won't hurt you to wait, the market is still falling. If a realtor tells you to act now, because interest rates are low, don't believe that such a reason is sufficient to act now. It isn't. Most people stay in a home only 7 years, before moving. The cost of paying PMI for the same period can easily outweigh paying a higher interest rate on a conventional mortgage, and getting into a property you can actually afford.

As far as stated income is concerned, self-employed people who are showing no income have a very hard time getting a mortgage--they always pay more, even if they have a great business. If you are showing income and paying your income taxes, what is the problem? Is it that you are showing no income at all, or too little to justify the mortgage payment? Perhaps you two have a parent willing to co-sign a loan with you. That, too may be another alternative.
ps- some mortgage brokers and lenders load additional fees
in. They have to disclose them to you, but it is legal for them to do that. And yes, you are the one that has to pay them. Shop with a mortgage broker with a good reputation. If you have a relationship with a bank, talk to your bank or credit union, too. There can be lots of money added to your costs.

Tom Said:

Is it legal for a Mortgage Lender to Add additional Fees and requirements months AFTER Good Faith Estimate?

We Answered:

They are infamous for doing this. You should contact your attorney and explain the situation. If your contract is contingent upon financing I would find another mortgage company. I would definitely not sign the contract till the terms are favorable to you and seek out a Up Front Mortgage Lender in your area they disclose all fees and do not play games, or a widely recognized bank (Country Wide is good, Bank of America has horrible rates and high closing costs). The downfall is that you will lose your appraisal fee and other application fees.