Junk Fees

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Dictionary Says

Definition of 'Junk Fees'

Nebulous charges assessed at the closing of a mortgage that go to the originator or lender. These fees are hidden in the mortgage documents and are usually assessed as raw dollars rather than "points" or a percentage of the loan. Junk fees may or may not pay for an actual service to the borrower, but they typically are not known to the borrower prior to signing. Some common fees that may be considered junk fees include settlement fees, sign-up fees, underwriting fees, funding fees, translation fees and messenger fees.

Also known as "padding fees" or "garbage fees".
Investopedia Says

Investopedia explains 'Junk Fees'

The idea behind junk fees is that at the end of the mortgage signing process, the borrower is already committed to signing the loan and will not walk away from the table. Junk fees, however, may not necessarily be noted in the good faith estimate the borrower receives a few days prior to closing.

Most junk fees are nominal compared to mortgage points and other major closing costs.
Search results for

'Junk Fees'

  • Watch Out For "Junk" Mortgage Fees

    http://www.investopedia.com/articles/mortgages-real-estate/08/mortgage-closing-costs-fees.asp
    Watch Out For "Junk" Mortgage Fees. ... Watch Out for the Garbage "Garbage fees",
    also known as "junk fees", are tacked on to most mortgages. ...

  • 12 Steps To Closing A Real Estate Deal

    http://www.investopedia.com/articles/mortgages-real-estate/10/closing-home-process.asp
    ... its services for free, of course, but many companies in this industry take advantage
    of consumers' ignorance and boost their bottom lines by charging junk fees ...

  • Buying A Home: Close And Become A Homeowner | Investopedia

    http://www.investopedia.com/university/home/home10.asp
    ... closely matches the good faith estimate you were given, that the amounts are correct
    and that you aren't being charged any unreasonably high fees or junk fees. ...

  • Dumpster Diving For Junk Bonds

    http://stocks.investopedia.com/stock-analysis/2009/Dumpster-Diving-For-Junk-Bonds-HYG-JNK-PHB0128.aspx
    ... the bonds shared with Barclay's iBoxx forms a bit of double-dipping on fees, which
    explains ... These junk bonds offer higher yields, but come with hefty leverage. ...

  • The Truth About Credit Card Swipe Fees - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0711/The-Truth-About-Credit-Card-Swipe-Fees.aspx
    ... interchange fees than they do in late fees and three times more than ATM fees. ... of
    the rest goes to pay for billions of pieces of unsolicited junk mail annually ...

  • 7 Low-Rate Mortgage Shams - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0709/7-Ways-To-Avoid-Low-Rate-Mortgage-Shams.aspx
    ... (Learn more about avoiding extra fees, read Watch Out For "Junk" Mortgage Fees.);
    Type of Loan What type of loan you qualify for will affect your interest rate. ...

  • Consider Prime Rate Funds For More Income

    http://www.investopedia.com/articles/mutualfund/08/prime-rate-funds.asp
    ... often charge higher-than-average expense ratios and levy redemption fees if investors ...
    they were rated by an agency, would have bond ratings classified as junk. ...

  • Should You Refinance Your Mortgage When Interest Rates Drop?

    http://www.investopedia.com/articles/mortgages-real-estate/09/refinance-mortgage-low-interest.asp
    ... (For more on this subject, read Watch Out For "Junk" Mortgage Fees and Score A Cheap
    Mortgage.) Overpaying on interest because you want no closing costs. ...

  • Income Funds 101

    http://www.investopedia.com/articles/mutualfund/09/income-funds.asp
    ... There are also ETFs that mirror several municipal bond and junk bond indexes. Fees
    are generally very low on ETFs, and annual taxable capital gains are minimal ...

  • My mortgage payments are no longer affordable; is there anything ...

    http://www.investopedia.com/ask/answers/09/mortgage-payments-prevent-foreclosure.asp
    ... For related reading, take a look at Behind The Scenes Of Your Mortgage and Watch
    Out For "Junk" Mortgage Fees. This question was answered by Steven Merkel. by ...

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