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Why Do Lenders Itemize Loan Charges?
July 20, 1998 "Wouldn't taking out a mortgage be less of an ordeal if lenders, instead of charging borrowers a bunch of different fees, charged a single fee covering everything? Why don't they?" You have put your finger on ... more... What Are Mortgage "Junk Fees"? August 3, 1998 "I have been warned to watch out for junk fees. What are they, and how much might they cost me?" Junk fees are upfront charges by the lender that are not included in "points". Junk fees are expressed in dollars whereas points are expressed as a percent of ... more... |
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processing fee related definitions |
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Origination Fee
Origination Fee Charge by a lender or broker connected with originating a loan; charged to prepare loan documents, make credit checks, inspect and sometimes appraise a property; usually computed as a percentage of the value of the loan. Loan origination fee usually ... more... Warehouse Fee Warehouse Fee Some mortgage companies borrow money on a short term basis in order to originate loans which are to be sold later in the secondary mortgage market. When the prime rate of interest is higher on short term loans than on mortgage loans, the mortgage firm has an ... more... |
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