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I wonder why your mortgage broker wouldn't waive the appraisal? They had other costs that they apparently paid for themselves. Someone had to pay to have the deed of trust recorded, a termite inspection (if required by your state), flood zone cert (if required), title search, etc. I don't know why the bank would charge you the one fee but not the others, but maybe that was the deal you were able to get from them.

Basically, I told him he though we would like to work with him, he was out of line fee wise, to the tune of about $850 too much. He waived about $850 in fees, leaving about $250 which they assessed as the appraisal. Termite inspection around here is not a fee charged by the mortgage co, though indeed a fee incurred to get a mortgage, as would have septic had it had one. This was not a refi, but an out and out purchase. We also got the water tested as it is on a well, and a home inspection. No flood cert required, and the title search is part of title insurance. We did indeed pay both parts of the title insurance. They also invited us to sign for a $100,000 no fee home equity loan, which we declined.

I am not saying there were no fees involved, but it was not as expensive as you seemed to indicate. Banks typically won't budge on fees, but mortgage brokers seem to have plenty of wiggle room. Before rebating us on fees, the broker would have received a $5,000 commission, (it has to be disclosed on the good faith estimates.) Ironically, had we gone directly to Citibank, they would not have reduced our fees at all even though they were saving the $5K by not going through a broker. We tried. The broker was by far the better deal.

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