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Mortgage Broker Fees

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					Mortgage Broker Fees
Today, Mortgage Brokers have become an essential part of every borrowing.
Taking loans without consulting a broker is considered to be a big
mistake. And why not, brokers are the ones who provide you with an
insight into the real mortgage market. They are the ones who provide you
with a life support system for getting across a huge and deadly ocean of
lenders. They come out with the best deals for you under any
circumstances. They also make you subject to various incentives from the
lender which direct contact cannot. Thus, No Mortgage Broker means No
Mortgage.
But Mortgage Brokers are not social workers. They don't advise people for
free. They give advice for a fee. Thus, a fee of a broker is a non-
neglect able segment of the loan. It is something which every borrower
has to give from the money which he saves by hiring a broker. A broker is
allowed to charge whatever fee he wants to but it should within the
general limits and the market demand. Also, a broker needs to cover
certain charges like appraisal fees, processing fees, etc which he is
bound to take from the borrower.
But on numerous occasions, brokers have been found to charge some junk
fees to the borrower. These fees are levied by the broker in order to
increase his profit margin and nothing else. It can easily be compared to
cheating or looting the borrower. These junk fees are common with online
broking. Many times, the brokers charge you for registering with their
website. This is not at all necessary because registering isn't costing
the broker anything and he is using the charges as a way to secure a
borrower in his kitty. Also it has been noticed that the brokers charge
an origination fee to the start the processing of your loan application.
This is once again an unnecessary charge levied just to fulfill the
broker's profit demands.
Then there is one more type of fee named Courier fee. This fee is imposed
to ensure that you get all the documents delivered at your doorstep.
Again in this, the brokers charge you almost twice the courier charges
and simply pocket the extra charges. And did you know that on numerous
occasions, your broker earns illegitimate profit by made some small
modifications in your payable interest rate? Yes, the brokers also charge
a little higher rate of interest than the current par rate thus making
huge amount of profit. With every $0.25 dollar extra paid by the borrower
due to the imposition of a higher rate of interest, the broker earns
$1.00 as profit.
Thus, brokers cheat you just to meet their ends. Hence, before paying the
broker you must ask the details from him on the various fees he has
charged you. Negotiations with brokers are a must. No negotiations mean
putting your head in the shark's mouth. Also, be stubborn while dealing
with your broker. Make him clear all the doubts in your mind regarding
the money he has charged before actually paying the money to him.
Jon Elton owns and operates a Car Home Life Insurance Quotes website to
help while making decision about insurance. He also operates a Cheap Car
Auto Insurance site to help taking decision about auto Insurance.

				
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posted:10/13/2010
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