As a homeowner looking to refinance your current mortgage or cash out equity in your home, one of your primary goals should be to avoid paying excessive fees. Mortgage lenders fees can rob you of any benefit you might seek from refinancing or cashing out equity. Here is what you need to know to get started.

Mortgage lenders love charging fees. If you are not careful, these fees can easily add up to thousands of dollars in charges you have no need to pay. Mortgage lenders and brokers are inherently greedy; because of this you need to shop around for the best deal on your new mortgage.

Add Up All Fees and Closing Costs

Make sure your lender gives you a good faith estimate that includes all fees. The Annual Percentage Rate found on this estimate factors in the interest rate, closing costs and any other fees you will required to pay. This Annual Percentage Rate is a useful figure to compare when shopping fro a mortgage. Make sure there are prepayment penalties for early repayment or other hidden fees buried in the fine print.

Lender fees are always subject to negotiation. The mortgage industry is fiercely competitive; as a homeowner you are truly in the driver