There are practically hundreds of Windsor mortgage brokers here in Essex County who can help you with a mortgage loan. Just open our local yellow pages and take a look. Some agents offer special mortgage interest programs, others refinance, and still others home equity loans. But sometimes, when you really delve into these lending programs, you’ll find what I like to call “nonsensical fees” crop up.
While the majority of Windsor credit unions, lenders and mortgage brokers are honest and often have a positive experience, it is very important that you are aware of some of the dishonest tactics you may encounter when refinancing or applying for a Windsor home loan program.
If you live in Windsor you are no doubt acutely aware of the troubled times we are facing. Business closures, layoffs and job losses appear in the Windsor Star almost daily. At the time of writing, Windsor’s unemployment rate is 13.6%! Given Windsor’s economic circumstances, choosing a mortgage broker who understands how to successfully deal with our city’s unique challenges and who does not charge additional/additional fees is critical to a positive credit score. In fact, by avoiding unnecessary fees over the course of your mortgage loan, you can save thousands of dollars. To be forewarned is to be prepared…
Many of the nonsensical fees you’re about to learn about are additional fees that (in most cases) just aren’t necessary. These can be fees that are fully reimbursed or added on by a Windsor mortgage broker who is simply trying to make more money out of your refinance or mortgage loan, and unfortunately at your expense! It’s easy to hide many of these fees in a complicated mortgage/refinancing agreement. And unless you have an attorney double-checking every dotted “I” on your loan agreement, it’s easy to overlook ridiculous fees.
Nonsensical fees are charged at the mortgage broker/agent level and are entirely at the discretion of the mortgage broker you choose to work with. Some mortgage brokers in Windsor can get really creative with their fees. Here are just a few creative nonsense charges I’ve seen in the past:
TOP 4 NONSENSE FEES TO AVOID:
- Lender Fees
- Document Handling Fees
- retainer fees
- application costs
The fees listed above can add up to hundreds, even thousands, of additional dollars, and by the time you’re done paying, you might end up paying more on a mortgage or refinance loan than you should have!
If you see any of these charges, contact your Windsor mortgage broker or agent. For example, ask why pay a lender fee when your mortgage broker is already being paid by the lender for the same thing? Otherwise, your mortgage broker is basically charging double what he/she should be – in other words, double dipping.
A Few More Unfair Mortgage Loan Tactics That Could Cost You Thousands!
Mortgage Penalties: If your existing mortgage loan has a prepayment penalty, some lenders or Windsor mortgage brokers will offer to “handle” penalties when you refinance just to keep your business going. What they often fail to mention is that you’re still paying them anyway. Some mortgage lenders calculate these penalties into the interest rate they offer you. So not only are you actually paying them, you are also paying interest on them.
Lender Tied Selling: Dishonest Mortgage Loan Tactics Are One Thing; This next point pretty much crosses the line of illegality. If you have a Windsor mortgage loan with a particular lender, you likely have a credit card account, or maybe even a line of credit, with the same lender. When a lender learns that you may refinance your loan with another financial institution, they sometimes tell you that if you refinance your Windsor mortgage loan with someone else, your credit card account or line of credit may be closed. This is known as tied selling and is considered illegal.
Monthly Compounding – Some mortgage brokers or lenders in Windsor will compound the interest on your refinance or mortgage loan monthly instead of twice a year while offering you a slightly lower interest rate. This results in you paying a lot more interest in the long run.
Remember that cheap Windsor mortgage loans or refinance options aren’t that cheap if it will cost you a lot more in the long run. Take the time to really understand the fees that any Windsor mortgage broker will charge you.