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Mortgage Fees: Defined & Explained

Mortgage application sheet
Close up of a mortgage application and a pen.

As you likely know, there are a number of fees involved in a real estate transaction. Mortgage fees fall into that category. This post will explain what mortgage fees are, what they cover and who pays them.

What mortgage fees are involved in a sale?

Fees associated with applying for a mortgage are paid for by the buyer. As buyers evaluate various lenders, it’s a smart practice to compare home loan fees the same way they would compare interest rates.

These fees include:

Some of the lender’s fees are considered “junk fees” by the real estate industry and can often be negotiated by the buyer. “Junk fees” typically include the application fee, loan processing fee, underwriting fee, mortgage rate lock fee and the broker rebate. Buyers can ask their lender to reduce or eliminate these fees. Though they may or may not be successful in their request, it’s worth asking.

Questions about mortgage fees? Ask us!

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