High Mortgage Lending Fees Continue To Be The Norm
According to a recent study prepared for the Department of Housing and Urban Development,the mortgage industry continues to take advantage of consumers’ confusion to charge some people much higher mortgage fees than others, The study found that loans arranged by brokers typically carried higher fees than those obtained directly from lenders.
Lenders typically make better offers to borrowers in neighborhoods with higher general levels of education. Total fees paid to the lender and broker averaged nearly $3,400 on loans with an average initial principal balance of $105,000, the report said. For brokered loans, the average fees were $4,000, compared with $3,150 for loans made directly by the lender.
Those fees are a combination of upfront charges and additional funds brokers and lenders get for selling loans with relatively high interest rates.
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