How to Avoid Junk Fees in Your Mortgage Payment
If you are complaining about your mortgage payment, first count your blessings. Most people can only dream of being in your position. Qualifying for a home mortgage loan is more elusive than it has been for Americans in decades. The prevalent sentiment these days is that, if your parents do not own a house, you have little chance of owning one. In today’s economy, where most families with an annual household income of $100,000 live paycheck to paycheck, it is almost impossible to save money for a down payment on a house, even if you are applying for an FHA mortgage, where the down payment is only a small percentage of the purchase price. Of course, our economic circumstances are so straitened that even the people who can afford to qualify for a home mortgage loan often struggle to keep up with payments once they have closed on the purchase. This can happen to anyone, but people with adjustable-rate mortgages are especially vulnerable. The best way to protect yourself from this problem is to read your closing statement carefully before you sign and to negotiate any fees, especially recurring ones, that you think are excessive. If your mortgage payment is unaffordable and you need to address your other debts so that you can qualify for a refinance, contact a Boca Raton debt lawyer.
Fees That Mortgage Lenders Sometimes Inflate
Real estate agents will brag endlessly about how much they helped you lower the closing costs. They might tell you that they persuaded the seller to cover some of the one-time fees and that they negotiated a discount on others. What they do not tell you is that some of the fees that you will pay as part of your monthly mortgage payment are excessive, or even altogether unnecessary. These fees are what the Consumer Financial Protection Bureau (CFPB) calls junk fees; you only pay them because businesses think they can get away with charging them. These are just some of the ways that mortgage lenders overcharge homeowners before they issue the mortgage and throughout the lifecycle of the loan:
- Inflating the price of application fees
- Excessive charges for underwriting
- Charging for mortgage rate lock during the application process
- Loan processing fees
- Paying rebates to brokers and charging you for it
- Excessive loan origination fees
Ask to See Your Closing Statement at Least Three Days Before Closing
At closing, you sign hundreds of papers in just over an hour. There is no time to think carefully about what they say before you sign. Therefore, you should review the closing statement carefully before closing. Ask your real estate agent or the settlement company to give you a copy of it at least three days before closing, even if doing so delays the closing by a few days.
Work With a Debt Lawyer About Achieving a Manageable Mortgage Payment
A South Florida debt lawyer can help you improve your credit score so that you can qualify for an affordable home mortgage loan. Contact Nowack & Olson, PLLC in Boca Raton, Florida to discuss your case.
Source:
investopedia.com/articles/mortgages-real-estate/08/mortgage-closing-costs-fees.asp
