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Fee Decoder

Loan Fee Decoder

Understand what each fee means and which ones you can negotiate

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Lender's charge for processing your loan. Often negotiable, especially with good credit or if you're bringing other business.

Questions to ask:

"Can this be reduced if I have excellent credit?"
"Is there a no-origination-fee option?"

Charged to process your application. Many lenders waive this. If they won't, consider another lender.

Questions to ask:

"Can this be waived?"
"Is this refundable if I'm not approved?"

Optional prepaid interest to lower your rate. Makes sense if you'll stay long enough to break even (usually 4-7 years).

Questions to ask:

"What rate do I get with 0 points?"
"What's the break-even period?"

Third-party assessment of property value. Required by lender. Cost varies by location and property type.

Questions to ask:

"Can I shop for my own appraiser?"
"What if the appraisal comes in low?"

Cost to pull your credit report. Should be a pass-through cost with no markup.

Questions to ask:

"Is this at-cost or marked up?"

Research to verify clear title. Necessary to ensure no liens or ownership disputes.

Questions to ask:

"Can I choose my own title company?"

Protects against title defects. Lender's policy is required; owner's policy is optional but recommended.

Questions to ask:

"Can I shop for title insurance?"
"Is there a reissue discount from a prior policy?"

Administrative fee for loan processing. Often duplicate of origination fee. Push back if they're charging both.

Questions to ask:

"Why is this separate from origination?"
"Can this be waived?"

Fee for reviewing your application. Like processing fee, may be duplicate charge.

Questions to ask:

"Is this included in origination?"
"Can it be reduced?"

Fee for preparing loan documents. Often a junk fee. Should be included in other charges.

Questions to ask:

"Why isn't this included in other fees?"
"Can this be waived?"

Negotiation tips

Do

Get quotes from multiple lenders
Ask for a fee breakdown in writing
Question any fee you don't understand
Compare Loan Estimates side by side

Don't

Accept "that's just how it is" answers
Pay fees before loan approval
Assume all fees are mandatory
Be afraid to walk away

Loan Fee Decoder

Origination Fee

Questions to ask:

Application Fee

Questions to ask:

Discount Points

Questions to ask:

Appraisal Fee

Questions to ask:

Credit Report Fee

Questions to ask:

Title Search

Questions to ask:

Title Insurance

Questions to ask:

Processing Fee

Questions to ask:

Underwriting Fee

Questions to ask:

Document Prep Fee

Questions to ask:

Negotiation tips

Do

Don't