Hi qs777, I have this same conversation with my friend who is a loan processor and I know she doesn't make $300+ per file. There's a significant difference between the COST of a job, and the compensation of the employee. Your friend may not be compensated a flat $300 per file processed, or nothing... but in most cases if you took her annual compensation plus the overhead she consumes as an employee, and divided it by the number of files she actually completed, that $300 fee is probably too low. Then how am I able to get those deducted? That's easy; "shell game!" Just shift things around (again, refer to the links I posted above in this thread.) It doesn't matter how magical you might think your negotiating skills are, the mortgage fee structure is sufficiently complex that at the closing table we can always make sure nobody is getting stiffed. And why can't I whittle these fees down to my best interest? See my linked post, above. Your *ONLY* real hope of getting treated right is choosing a fiduciary-acting broker (which I see is what you have indeed done.) My suggestion of one lender's fee was just so they can divvy up however they want to instead of calling them everything under the sun - not to let the system blind me. It would make it easier for borrowers to compare. But that is ALREADY provided on the Good Faith Estimate, at the bottom line, called "total closing costs estimated." The *ONLY* reason everything is exploded out into a line item basis of disclosure is because the regulators have demanded it in theoretical DEFENSE of your best interests. If mortgage bankers and brokers had our way, the paperwork for residential deals would be just like (the unregulated) commercial deals... maybe 3-4 pages max, with a very simple and short balance sheet of total costs, terms & rates. Unfortunately, our regulators are heading the opposite direction, and you can actually look forward to GREATER complexity & confusion in the coming year or so as HUD rolls out the "new and improved, expanded" Good Faith Estimates. These are threatened to be 3-4 pages each. I just don't like people being taken advantage of with a high rate and high fees when they are excellent candidates and may not know any better. I agree... but the ONLY effective solution is education. Industry constriction simply hurts the GOOD players, and the sophisticated borrowers & investors. If the problem is uneducated people endangering themselves, then we need a mandatory educational system that issues licensing for the privilege (like drivers licensing.) THEN we can nip the problem in the butt by telling lenders that their NOTES (borrowing agreements) will be invalid and uncollectible if they make a loan to an unlicensed consumer. If a consumer gets the required education to be licensed to borrow (i.e. "drive") and still drives themselves over a cliff, then society has done their best efforts and no further bailouts are required. Cheers, Dave Donhoff Leverage Planner

Oh Holly, this is a wonderful problem to have! I think whatever it is you've been doing sounds really good and I'd like to know your secrets. :-) I agree with NC Real Estate that you could probably get more in interest on investing the money than you'd be paying in mortgage interest. BUT that would involve self discipline on your part not to touch it. And anyway that's not the question you asked. Is your husband willing to put a bunch of time into fixing up your house if you buy something that needs work, or does he have the mindset that he does that all day for other people and does not want to come home and deal with the same problems? Either way I think I agree with everyone who said to first try to make sure there's nothing you might like within your cash price.

What azmom says is absolutely correct, I will expand on it with my opinion. I will take someone financially smart over someone financially conservative every day of the week. There is a reason that people who really understand the system, don't mind the right kind of debt. I create, out of thin air, thousands of dollars every year by using debt smartly. A few years ago I had the best year so far. I created almost double my annual salary in interest rate spreads. I am not talking all of my investments, just the money that I would have paid off but chose instead to keep in debt. One easy example, I got an offer for a 0% interest for 18 months on balance transfers offer from a credit card company. I was looking for a new car so I charged $10,000 of it on my credit card then transferred it. I made the minimum monthly payment out of the investment account that I put the $10,000 I was planning on putting down into. After paying the car off I have over $3,000 left in that account. I created more than $3,000 of real usable money for myself because I was willing to take on the right kind of debt. Being overly conservative with your investments can also be a detriment. Age appropriate broad market investing will simply make you wealthier than conservative investing. Being afraid to lose money is also being afraid to make money. Protect yourself with diversification not risk aversion. Think not only in terms of your overall financial position but in terms of your monthly paycheck and how that money gets spent. Sometimes financial decisions that seem amazing have a real negative impact on your actual monthly cash , while things that seem risky may have little impact on your monthly cash. Liquidity > everything. Money is only good if you can spend it. Being rich is not worth anything if you can't turn at least a portion of your position into cash. You can't stick real estate into your wallet and trade it for food at the local grocery store. To me - being smart with your money means disciplined spending, risk appropriate investing, awareness of your actual cash flows and liquidity. If you master those things you will simply be in a better financial position than people who don't.

I will second (or third) the recommendation to go with someone local. First of all, it is a great idea to develop a relationship with such a person.... ours contacted us 9 months after our first refi to let us know rates were (significantly)even lower and it would be beneficial to refi again. Someone local will be interested in keeping their excellent local reputation, such on on Yelp, Nextdoor, and the local real estate agents, and with your neighbors, etc. They have an incentive therefor to be accomodating and honest, and helpful. Ask your friends and neighbors.