If you are considering refinancing your mortgage with lendingtree.com you should reconsider if you don’t want to overpay for your next loan. LendingTree claims there is not fee for using their service; however, this is simply not true. You will pay LendingTree as much as $1300 for using their website to find a mortgage lender. Here is how LendingTree deceptively makes their money referring your business to mortgage lenders.
If you head over to LendingTree’s website and click on the link for Licenses and Disclosures you can read how LendingTree makes their money. LendingTree claims they are a “Computerized Loan Originator.” This means they are acting as a broker and are paid for referring your business to mortgage lenders. They claim: “LendingTree, LLC does not charge you any fees for its services.” This is simply a bold face lie.
If you scroll down the page to the “Good Faith Estimate Addendum” you will see that LendingTree receives a “Computerized Loan Origination Fee” of up to $1300 and this charge will appear on the Good Faith Estimate you receive from the lender. Because the fee is charged by the lender and paid to LendingTree they claim you are not charged for their services. Either way, you’re still out $1300 and LendingTree is lying about their fees. Does it matter who charges you the fee for their services?
How can you avoid paying Computerized Loan Origination Fees? Do your own online mortgage research you can comparison shop from a variety of mortgage lenders and apply directly from their websites, avoiding third party fees charged by sites like LendingTree completely. To learn more about mortgage refinancing while avoiding costly mistakes, register for our free mortgage tutorial: Mortgage Refinancing, What You Need to Know.
My name is Rob Regehr and I’m a personal finance writer with a chip on my shoulder for banks and brokers that take advantage of my friends and neighbors.
