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Are administration fees really justified?


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Answered 2006-09-16 14:07:49

If we are talking about this fee in a mortgage closing--I would say that it is an added fee for the broker's pocket. Some broker's may not be making enough and they add this in--some just do because they can. You can try to negotiate not paying this by questioning it. Also there are a few mortgage companies that charge this to cover a variety of fees that they would originally charge-- on a Good Faith Estimate--one administration fee is better than 3-4 fees spread out.

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