FeeDisclosure.com Analyzes Mortgage Fees

One of the dangers to watch out for when buying a home are the various kinds of fees that can crop up, and comparison shopping these fees is not always easy. Now there’s a new site that gives you a reasonable baseline you can expect, specific to your area and property deal. Input your transaction, property and occupancy type, purchase price, and zipcode, and FeeDisclosure.com will tell what various fees you can expect in getting your mortgage. Much-needed transparency for a notoriously murky and shark-infested industry.

FeeDisclosure [Official Site]
Clicking the Way to Mortgage Savings [NYT via ConsumerWorldBlog]

Comments

Edit Your Comment

  1. VeritasNoir says:

    It looks like this is more of an advertising tool for lenders, appraisers, and brokers. The concept is fantastic, but I question the source. When I tested the closing fees for a refinance in a given Zip Code, the site provided me with the name of a mortgage broker (without telling me the fees/points associated), the name of an appraiser with an estimated fee, and no real disclosures or information regarding title fees.

  2. ironchef says:

    Only legit fees are:

    appraisal fee
    title search & insurance.
    Notary.
    Escrow fee.
    Messenger services (no markup). You can insist on your own fedex numbers to do that documentation transfer.

    Any thing beyond that I treat with deep suspicion.

  3. FDCPAGuy says:

    @IRONCHEF
    There are a few others you’ve missed such as; Flood certification, Credit report, Flood search (yup two flood related things that total around $15 usually), recording fees, and some states have tax stamps. Usually you will pay either processing and underwriting fees or origination fees.

    IMO chose a bank you trust which is able to accomplish your goals. Shopping GFEs (Good Faith Estimates) is not terribly useful since they are estimates provided prior to loan approval nor underwriting and sometimes do change prior to closing by a great deal (whether it’s bait and switch or a change in underwriting criteria). Plus the mortgage rates change daily (sometimes more than once a day) so “shopping” is usually a semi waste of time.

    @VERITASNOIR
    You smells like a ad or lead generating source.

  4. theDevilsDue says:

    Meh. The site didn’t provide any meaningful information regarding fees. Total waste of time…

  5. ironchef says:

    @FDCPAGuy:

    My mortgage application never had a flood certification report. I live on top of a huge hill.

    I guess it depends on where you live and if your mortgage lender demands it.

  6. GearheadGeek says:

    @FDCPAGuy: … then don’t post a whine on here when you find out you got your mortgage at a higher rate than you might’ve paid. BOTH activities are important… choosing a lender you trust (such as a bank you already have a relationship with) AND shopping a bit so you know the current landscape of rates and terms.

  7. BugMeNot2 says:

    This site is nothing but advertising for vendors who pay to be listed.

  8. FDCPAGuy says:

    @GearHeadGeek
    Guess what? Aside from Jumbo loans most (90%+ I’d say) are either FHA which have guidelines set forth by HUD or FNMA/FHLMC backed loans which will have the same guidelines no matter which lender submits it for approval. Also banks get their rates from the same place (the bond market to over simplify) so just like regional gas stations you’ll see a price variance of $0.03 or so. Most banks are within .125% in rate of each other. BUT if you want to shop and find that out be my guess to waste (or not which is your PREMISE) your own time :)

  9. loueloui says:

    @BugMeNot2:

    Agreed. I can’t find any valuable info here. This looks mostly like a paid listing referral service. Not much use to someone looking for objective data.

  10. jd says:

    To Whom It May Concern and In Response to the Host of Comments listed on your site.

    Some points of note:

    We are not an advertising lead gen site. Our system is a Free and Open Platform for consumers to obtain up front information regarding the costs and fees associated with a real estate transaction. These fees and costs have been a consumer mystery for far too long. It should also be noted that the Federal Reserve Chairman supports legislation that will make it mandatory for this information to be provided Up Front per the attached link. Fee Disclosure will play a role in changing public policy.

    >Our site is an informational source providing consumers with information they have never had access to before.

    >Vendors also have the opportunity to also list themselves for Free, provided they complete our required registration input and list their fees and service costs. It should also be noted that vendors are required to update their fees every 90 days. If they do not do so they are removed from the site.

    >Our revenue is generated via the professionals who want to provide their clients with a complete Fee Disclosure report. The cost to do so is $99 per year and allows them to run as many reports as they want. In addition if they want to be highlighted as a featured member they can do so for $49 dollars per year. We limit these featured members to 5 per zip code. It should again be noted, this is not a requirement, and every vendor has the opportunity to join the site for Free.

    >Rome was not built in a day. We are a young growing company with vendors signing up everyday. We may not have every zip code covered yet, but we will.

    >Consumers Need to Demand Their Fee Disclosure…Its Their Right To Know!

    JD

  11. jd says:

    Thank you for taking the time to comment and offer suggestions for our site. We are an innovative company that recognizes the feedback and input we receive from everyone only serves to help us improve and provide the best of ongoing features and benefits.

    To help clarify the goals and benefits of our site, some points of note include:

    We are providing a true, open marketplace for both consumers and service providers to connect with each other on the local level. There are no costs for consumers, and service providers may register and market themselves for free. Our goal is to increase the financial literacy of consumers who otherwise have a near impossible task to research what fees are valid and which are not. Mortgages are a function of both rates and fees.

    The Department of Housing Urban Development (HUD) reported that excluding commissions, consumers spend $53 billion dollars in closing costs for real estate and mortgage transactions. HUD estimates that up to $17 billion dollars were excessive over charges (junk fees). Even more alarming, minorities and women are being charged as much as nine times more than Caucasians for a standard real estate and mortgage transaction. This is to say that regardless of your education and background, more likely than not, you have probably spent more than you should. At a minimum, our system provides you a free resource to at least compare and learn about fees.

    We are not an advertising lead gen site, nor do we broker real estate or mortgage transactions. Our system is a Free and Open Platform for consumers to obtain up front information regarding the costs and fees associated with a real estate transaction. These fees and costs have been a consumer mystery for far too long. It should also be noted that the Federal Reserve Chairman supports legislation that will make it mandatory for this information to be provided Up Front per the attached link. Fee Disclosure will play a role in changing public policy. (NY Times article – [www.nytimes.com])

    > Our site is an informational source providing consumers with information they have never had access to before. At the very least, ask for a Fee Disclosure report to use as a baseline to assess costs and fees. An open and fair loan professional or real estate agent will be happy to discuss your true fees.

    > Vendors also have the opportunity to also list themselves for Free, provided they complete our required registration input and list their fees and service costs.

    > Our revenue is generated via the professionals who want to provide their clients with a complete Fee Disclosure report. The cost to do so is only $99 per year and allows them to run as many reports as they want. Additionally, if they want to be highlighted as a featured member they can do so for $49 dollars per year. We limit these featured members to 5 per zip code. It should again be noted, this is not a requirement, and every vendor has the opportunity to join the site for Free. All vendors are available and easily accessible under the “View all vendor” links.

    > Our system currently covers the nations 50 largest metro areas. We have service providers joining our Fee Disclosure community everyday. Rome was not built in a day. We may not have every zip code covered yet, but we will.

    Our message is simple …. Request your Fee Disclosure Report… It’s Your Right..!

    JD

  12. Anonymous says:

    Predatory lending may be a term applied to payday loans by some; especially those bought off by banks and credit card companies, but not by many payday loan customers. The public can easily be offset by claims of outrageous interest rates, but the claims are mostly bunk. The APR, or annual percentage rate, that is claimed by many detractors of 361% is preposterous. The fee for most payday loan stores is between $15 to $30 for every $100 taken out, which if repaid on time, usually in a one to two week period, equals out to 15 to 30% interest. To accrue the 361% interest, you would have to lapse on payment for an entire year. Then again, like any other service, a payday loan lender will add interest and fees for late payments. If you are late on a mortgage payment, you will get hit with a $75 fee, which you can avoid if you take out a payday loan if you end up short by a hundred dollars or so. Applying for a payday loan is fast, easy, and if approved, you can even have the funds direct deposited into your checking within a few hours. Click here to read more on payday loans.