HELP. My sister just refinanced and the paper work has many fees.?

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My sister just refinanced her home. She regrets doing it. There are too many fees. We don’t even know what they mean. For example:
-BROKER APPRAISAL FEE: $ 450.00
-BROKER PROCESSING FEE: $ 695.00
-LENDER LOAN FEE TO BROKER: $ 6200.00
-BROKER ORIGINATION FEE: $ 3100.00
-FUNDING AND REVIEW: $ 455.00
these are just the ridiculous looking ones.
The proposed loan amount is 310,000.00

The screwed up part is, the mortgage broker (a good friend of ours) said she wasn’t going to charge us for preparing it.
Is there any way this can be reversed? This was processed march 29.

4 Comments
  1. Reply
    ThinkingMan
    February 23, 2011 at 9:31 pm

    Provided the contracts are signed I do not believe there is a way to back out unless they will allow you to. You might want to check and see if there is a ‘cooling off’ period or a ‘right to rescind’ law in your state. Generally this is regarded as an acceptance contract and it is presumed that you understood the terms when you signed. If however you would like to challenge the contract on the grounds that it was misleading or that the fees were not adequately disclosed, you can do so, however it wouldn’t likely be worth it since the attorney’s fees are surely going to me more expensive than the loan fees. The best advice if there is not right to rescind law is to learn from the experience and be sure to THOROUGHLY read all contracts before signing.

  2. Reply
    Chris C
    February 23, 2011 at 9:38 pm

    Not if she has already funded and closed.

    If she has not funded and closed she can stop by not signing the paperwork.

    Please contact me with any other questions.

    Good Luck
    Chris C
    Real Estate Broker/Lender

  3. Reply
    beach_babe971
    February 23, 2011 at 10:17 pm

    march 29? no theres nothing you can do. you always need to read before you sign. how can you not see those fees before you sign? after you refinance you have 3 days to cancel. after 3 days, you have to pay it. all you can do is refinance again, and read what your signing, or pay the sees. the broker fee is fair, its 1% of your loan which is $ 3,100. if you refinance again, theres some banks that have no closing cost. but if you pay the fees, it will be worth it in the long term if it lowered your monthly payments.

  4. Reply
    Barbara R
    February 23, 2011 at 10:40 pm

    All of these fees except for the Appraisal fee are monies going into the pocket of the mortgage broker. They are each called a different thing, but all are profit to the broker for doing the loan.

    And what tops it all off? They also get a kick-back of $ 8,000-$ 12,000 (if not more, depending on how high the interest rate they sold her) from the investor, the one who puts up the money. It sounds like somebody made a great deal of money on this loan and your sister ate it.

    All the mortgage broker does is file the paperwork. Pretty good business to be in if you enjoy cheating people. I left that business a few years ago, couldn’t live with myself.

    Your sister paid these fees and there’s nothing she can do about it. Your good friend lied, but probably didn’t have control over anything here, anyways.

    When the money is placed in front of the person wanting the money, they are betting that all these costs won’t matter so they put them at the highest they can. She had to have received an estimate of costs prior to the closing (this is a law)…she should have looked them over. These charges are outrageous but unregulated so they can get away with major robbery…and they did.

    Sorry.

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