Thanks today for this interesting guest post talking about parts of mortgage costs and fees that are not always out in the open. I found getting my first mortgage quite difficult because all these fees seemingly appeared from no where and I was not well prepared. These days I would rather just avoid getting a mortgage but if it is something you want to do it is best to be as educated as you possibly can. If you have anything to comment on or add please do so in the comments below.
As a function of increased competition for the home mortgage lending dollar in recent years, there has been a tremendous upsurge in the number and variety of mortgage products on the market. Associated with this increase in mortgage product options is a dizzying rise in the number and size of fees accompanying these products.
Part of the process of selecting the best mortgage option for you is to keep the effect of these fees to a minimum. The overall impact of these costs can be tremendous; estimates range from 6-8% of the value of the property, which can easily run into the tens of thousands of dollars.
Tracking the size of these expenses can be a sobering experience; most of the major lenders have a mortgage calculator on their websites which will show you some of these costs, but some fees remain unaccounted for.