At least according to this mortgage piece on Channel 3.

Hey mortgage guys and gals, does this sound about right to you?

3 On your side consulted a mortgage expert to find out what fees to watch out for, first processing fees.

” Most common fee of them all typically,” Wegner said.

Wegner, from WJ Bradley Mortgage Captial said on average this should run you about $500-800.

Beware because these fees are on the rise as lenders try to compensate for the lower rate loans. Be sure to compare several lenders’ fees and question anything that seems redundant.

Next be aware that Fannie May and Freddie Mac yet again increased fees for loans they purchase or insure.

” They are losing money so they have to make money somewhere,” he said.

To figure out if you’ll be hit with these charges, ask your lender or mortgage broker whether your loan will be sold to or insured by Fannie or Freddie. Today that’s the case for 56% of all outstanding mortgages.

Third on this list of costly mortgage fees are appraisal fees.

That is because of the home valuation code of conduct, a set of regulations on property appraisals that went into effect May 1.

And finally, private mortgage insurance is required of anyone purchasing or refinancing a home with less than 20% equity and it’s getting more expensive for borrowers with lower credit scores.

” If you have large down payment and high fico score, ask them to show you where that comes together on the chart and that’s why you are paying that amount,” Wegner said.

When shopping for a mortgage, ask lenders to provide you with a good faith estimate, so you can compare costs.

Wegner said you should be able to see the bottom line right there in black and white.

” Typically figure 3-4% sales price, all of your fees, all together,” he said. ” Other than that, you need to ask for an explanation as to what you are paying for.”

ADDED: Burt Carlson emails, “Generally on the mark. Our processing fee is $495 then the investor has their fees for underwriting, etc which can add up to an additional $500-800. The appraisal issue is a big concern right now and the industry is backing legislation to suspend the HVCC (Home Valuation Code of Conduct). As for FNMA pricing adjustments there are risk adjustments for Loan to Value (LTV) and Fico (credit score). One wonders if these risk adjustments had been in place in 2005 would the housing crisis been mitigated”¦”¦”¦”¦”¦”¦”¦”¦”¦”