Avoid
Banks Competing For Your Business
When
banks compete, you are the one who loses. You may not be sure
of this and how it all works so we're going to explain. Home buyers
need to be more aware of the schemes that companies like LendingTree.com
pull. LendingTree.com claims that they are a free service and
they do not charge you for the service of helping you find the
best Mortgage offer. What you don't know is that when you use
Lending Tree to sign up with a Mortgage company to refinance your
loan, there will be a fee of $1300 that you have to pay.
Lending
Tree disguises it because they don't want you to know that you
are actually paying for their service. They say that it is free
but if you sign up for refinancing with one of their lenders,
you will see a $1300 fee on your bill which goes to Lending Tree
for making the hook-up. Not exactly free is it? The reason why
Lending Tree is deceitful about this is that they claim they have
no fees yet once you sign up for a particular company, that company
will bill you and will include the Lending Tree fees.
You
can see this for yourself on their website. Look at the bottom
of the page for the link called "Licenses and Disclosures".
This text will explain to you how Lending Tree really works and
how they make money. In addition, you will read about how the
state of Massachusetts actually sued LendingTree.com for their
false claims. Here is a portion of that text:
"LendingTree,
LLC is not charging you a fee to arrange a Mortgage loan from
the Mortgage Lender. If you choose the traditional LendingTree,
LLC path, LendingTree, LLC will be receiving a fee of up to $1,300
from the Lender for arranging this loan. The amount of this fee
will be disclosed to you on the Good Faith Estimate you receive
from the Lender you select."
Basically
what this means is that while they do not charge you for using
their site, if you choose a loan with one of the Lending Tree
lenders, you will pay them a flat fee of $1300 which is called
a "Computerized Loan Origination Fee". These fees are
sneaky and deceptive from companies like Lending Tree because
the Mortgage owner does not actually realize they are paying for
it. Some may not mind paying the fee if they knew about it but
all people should have the option of choosing if they want to
pay for this service or not. Disguising it like a free service
is wrong.
The
problem with this is that LendingTree.com is not the only company
to do this or to use these Computerized Origination Fees, although
they are probably the most common. In fact, there are many loan
and Mortgage websites on the Internet that don't actually have
anything to do with Mortgages or lenders. They are just acting
as a middle man to sell your name and information to the lenders
for a "finder's fee". While there's nothing wrong with
setting up a site to provide information or a service to people,
it is deceitful to pretend that this service is free and then
secretly charge a fee.
You
can protect yourself from sites like this on the Internet and
learn all that you can about your Mortgage and refinancing options.
Toll
Free Call - (866) 323-7603