Junk Fees

Buying a house is expensive. And we’re not just talking about the price of the house itself. We’re talking about all the other expenses we have to pay, like inspection costs and broker fees. And what’s even worse is when we’re closing the mortgage with our lender, and all of a sudden there are a bunch of extra fees we didn’t expect tacked onto the bottom line.

“What the what?” we ask. “What are all these fees?”

They're what are known as “junk fees,” and they tend to earn a big frowny-face from everyone on the receiving end of them. These fees are often excessive, and are sometimes a complete sham. Some of the names they might go by include “document fee,” “administrative storage fee,” “application processing addendum fee,” etc. They’ll often show up at the last minute, totally unexpected and totally unwanted (like that weird neighbor who always crashes our BBQs), and the only purpose they serve is netting more cash for the mortgage lender.

Now, don’t get us wrong—some fees are legit. But if we’re happily signing all the dotted lines that come with buying a house, and we see a bunch of questionable fee charges, we shouldn’t be afraid to speak up. We have the right to contest those charges; they aren’t illegal, but if we fight them, there’s a decent chance we could get them reduced, or even removed altogether. And that would definitely turn any frown upside-down.