Mortgage Refinancing Online - Watch Out For Hidden Fees

If you are refinancing your mortgage loan on the Internet there is a hidden fee you are likely to encounter that could cost you as much as $1,300. You will be required to pay this fee simply because you typed your name and address into a form on the wrong mortgage site. Here are several tips to help you avoid this unnecessary garbage fee when refinancing your mortgage online.

The Internet can be an excellent resource for finding a good deal on your mortgage loan. The problem with shopping for a mortgage online is that it can be difficult to determine who the actual mortgage lender is. There are plenty of websites out there masquerading as mortgage lenders, even well known websites with catchy phrases you see on television. These sites actually have absolutely nothing to so with mortgage loans. They only collect your personal information and sell it to mortgage lenders and brokers.

The bad news is that the mortgage lenders and brokers don't pay the fee. The fee these company pay for mortgage leads is added to your settlement costs when closing on the mortgage. The fee appears on your Good Faith Estimate as a "Computerized Loan Origination Fee" and in the case of one well known "mortgage website" that advertises on television, it will cost you as much as $1,300. This is money out of your pocket just because you filled out a form on the wrong website.

How can you avoid paying Computerized Loan Origination fees when refinancing your mortgage loan? Before you fill out any contact forms on the web read the fine print. You'll find the information in the Licensees and Disclosure section on many "mortgage" websites. If you visit a site that does not have this disclosure statement, consider scratching that site off your list because they probably represent a special category of mortgage lender that is exempt from the Real Estate Settlement Procedures Act. You can learn more about your mortgage refinancing options, including costly mistakes to avoid with a free mortgage refinancing tutorial.