Refinance Home Mortgage Online - Beware Computerized Loan Origination Fees

If you are in the process of refinancing your mortgage on the Internet, there are a number of garbage fees you need to avoid. Computerized loan origination fees are among the worst; unknowingly agreeing to pay this fee can cost you as much as $1,300 for no reason. Here are several tips to help you avoid garbage fees when refinancing your mortgage online.

Computerized Loan Origination fees are paid to websites that generate leads for mortgage companies and brokers. These websites have absolutely nothing to do with mortgage loans; they slap up websites with a contact form and drive traffic to them from the search engines. When you fill in your financial information and contact information the company gets paid by selling your details.

There’s nothing wrong with companies that sell leads in general; the problem comes from companies that pass the fee on to you the borrower. One particular “Lending” site that advertises on television promising to get mortgage lenders “competing” for your business receives up to $1,300 for selling your information. Take a minute to read the licenses & disclosure statement found on this website and you’ll discover the fee is passed on to you at closing.

Is charging someone $1,300 for the privilege of filling out a contact form on your site even legal? It is if you disclose what you’re doing; however, as you’ll find this disclosure is buried deep in the fine print.

How can you avoid paying this ridiculous garbage fee when refinancing your home mortgage? Always read before you submit any information to find out if there is a fee and if it comes back to you on your Good Faith Estimate.