Tag Archives: junk fees

Just Say “No” to Mortgage Loan Fees


“No.” It’s a simple word, right? But it’s amazing how often we have difficulty saying it. Especially at those times when it affects our finances. If we could just get a bit more practice in using “No” as a response to tough – or even friendly sales tactics – though, we’d probably be surprised at how far those two little letters can take us down the road to getting a better deal. Especially when it comes to a mortgage loan.

How does that work, you ask? Rick Piette, owner of Las Vegas-based Premier Mortgage Lending explains: “For decades, the mortgage industry in general has subtly trained homebuyers to simply accept the idea that getting a mortgage loan costs money . . . a lot of money. Banks and mortgage bankers have added huge fees to the Loan Estimates they provide their customers – and it’s not a coincidence that those in the industry commonly refer to them as “junk fees.

The first fee homebuyers should learn to “Just Say No” to is the Loan Origination,” continues Piette. “Lenders often explain that this figure – which can add 1-2% (or even more) to your loan amount – is “necessary” to “buy down” your interest rate. That’s simply not true. While sometimes it is possible, or even wise, to do that with a Loan Origination Fee – it’s simply not something you should have to pay to get the current market interest rate for a traditional mortgage loan.

The second fee to say “No” to is the Processing Fee. This figure will vary from lender to lender, if they charge this fee at all (which Premier Lending does not),” Piette adds. “And it can reach some pretty high numbers – as much as $495-$695 and up. But think about it: Why would you have to pay a fee for someone to simply do their job and process your loan application? Don’t they already get paid for that? The answer is – yes, they do. The correct phrase to tell your lender if this fee shows up is: “No, I’m not paying this.”

Third is the Underwriting Fee. Again, another way (and a creative term, don’t you think?) for lenders to add additional income to their bottom line just for the act of making your loan to you. Just. Say. No.

And fourth, the infamous Document Prep Fee,” explains Piette. “This one is probably the most blatant junk fee of all – charging you for their time just to draw up the documents that are necessary to make your loan in the first place. Normally in the $250 or so range, I think this particular fee is the one that infuriates borrowers the most. (And imagine the satisfaction you’ll get for saying “No!” to that one!)”

“Altogether, for a $200,000 mortgage loan – these junk fees alone can cost a consumer as much $4,000 or more, and that comes right out of you pocket at escrow closing. Considering all the other legitimate costs that homebuyers are required to pay at closing – such as recurring costs (taxes, insurance, etc.), and legitimate closing costs (title search, title insurance, flood determination fee, transfer tax, etc.) – when lenders choose to add such expensive and arbitrary costs, well . . . we just don’t think that’s right,” explains Piette. “That’s why we chose to operate as a Mortgage Broker, and we can offer our customers a true, no-smoke-and-mirrors, “No Fee” loan.

It’s not that at Premier Mortgage we have anything against a business making a profit, of course. That’s a huge part of bringing jobs to a community, and we’re all for that! But we all know that some companies operate more ethically than others. And where some will take financial advantage of their customers (even illegal advantages – as in the recent Wells Fargo fiasco demonstrates) – others are committed to consistently doing the right thing, making a fair profit, and helping customers save more of their own hard-earned money.

The latter is even more common when it comes to local community-based businesses. Why? Because these are your neighbors, your friends, the people who share your love for your town and truly want to make it a better place for all its residents. Fortunately for Las Vegas homebuyers, that also happens to perfectly describe the team at Premier Mortgage Lending.

“At Premier, we want to help our customers not only get the best deal and the best rate for their mortgage loans, we want them to understand why and how we’re able to offer that to them,” Piette continues. “We’ve even created a website (www.KnowBeforeYouOweNevada.com) of short informational videos to help borrowers understand the basics that will allow them to compare lenders themselves. It’s not about us saying “We’re the best – use us for your loan!” It’s about helping people to make the best financial decisions for their situation.

“Of course, since pretty much any financial decision is going to include the desire to save money, that pretty much explains why so many homebuyers do choose Premier Mortgage Lending for their home purchase or refinance loan needs,” Piette offers.

Find out more about Premier Mortgage Lending’s true “No Fee” mortgage loans, as well as their many other products and services by calling (702) 485-6600. Their experienced loan officers are there to help with your questions and can assist you in navigating from signed purchase agreement – to getting the keys to your new home.

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas, Henderson, and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

New No Fee Mortgage Can Save Homebuyers Thousands In Closing Costs

Rick PiettePurchasing a home will probably be one of the biggest and most expensive decisions in one’s life. You want to buy at the lowest cost, and the seller wants to sell at the highest price. Discovering the best mortgage deal can help home buyers to save thousands of dollars at closing time.

“Buying a home can be nerve-wracking because of all the paperwork and the money that’s involved. Finding the right home that meets your needs for a good price can be tricky, and sifting through all of your mortgage options in search of the best deal can be downright confusing,” said Rick Piette of Premier Mortgage Lending.

The first step in the home buying process, after selecting a Realtor, is getting a “pre-qualification letter” from a mortgage lender.

“Normally your Realtor will guide you to this first mortgage source. With ‘pre-qual letter’ in hand, you’ll now be able to go home shopping,” Piette said.

“But most people get so caught up in the home buying process – and don’t realize that they still need to shop for the best mortgage deal – a step that can save you thousands. You are led to believe that the loan officer who issued your pre-qual letter has to close your loan … but that is just not true.”

Piette encourages home shoppers and those thinking of refinancing to meet with a full-service mortgage broker like Premier Mortgage Lending, in addition to mortgage bankers, to become educated of all of their financing options.

“A real advantage to working with a mortgage broker is that you can obtain a home loan with no lender fees. Also a broker can connect you to multiple lending institutions with a multitude of loan products that have varying interest rates and costs. To find the best mortgage deal for your specific circumstances, take your time to compare multiple programs and their different interest rates, APRs, monthly payments for different loan amounts, and out-of-pocket-closing-cost scenarios. If you do not understand something, just ask,” Piette said, adding that his company connects borrowers to multiple lending programs including the popular no-fee traditional loans as well as second chance financing for those who have experienced a short sale or foreclosure.

“With all of this information in hand, you can make an educated, financially sound decision,” he said. “For obvious reasons, our no fee mortgage is a popular choice because its out-of-pocket costs are significantly less and we don’t charge ‘junk fees’ like others do.”

The price difference and “junk fees” can be found in the “origination charges” – one of three types of charges found in your good faith estimate. “Origination charges” can vary between lenders, unlike the “prepaid charges” (taxes, insurance and homeowners association fees) and the “title and escrow” charges which will end up to be the same regardless of the lender chosen.

“Most lenders charge one percent of your loan amount for the origination fee. If you look at your mortgage paperwork, you may notice that it’s more than the typical one percent because some lenders tack on ‘junk fees’ that are sometimes listed as mortgage processing or underwriting fees,” Piette said. “You don’t have to pay an origination fee or those ‘junk fees.’ You can save money by shopping around for a lender that doesn’t charge them like Premier Mortgage Lending.”

Piette explained that brokers’ origination fees are now considerably less than banks or mortgage bankers because 2014 federal regulations capped what mortgage brokers can charge consumers as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

“These new rules are great for the consumer because it can save you money on one of the biggest purchases that you’ll ever make in your life. Where you get your mortgage loan does not really matter. What matters is finding the home that’s right for your family and not paying any more than you have to for your home or your loan,” Piette said.

The first step in finding the best loan deal is completing the complimentary mortgage prequalification process and analyzing the paperwork that is provided.

For additional information or to schedule an appointment for mortgage prequalification or refinancing, call Premier Mortgage Lending at 702-485-6600 or visit premiermortgagelending.com.

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.