I used MoneyTree and it looks like I had to pay:
395 for Loan Origination Fee
595 for Processing Fee
I'm not what else on the sheet MoneyTree is a direct/indirect recepient of but is that considered high or normal?
$1,000 just for them to help you find a lender?
To me, I wouldn't want to pay that to Money Tree. The reality is that they actually made more than that off your loan. They made those fees in addition to the fees they charge the lenders to buy the lead. Most of the time the lead runs each lender about $400. So Money Tree made about $2,600 on your deal if they sold your lead to 4 lenders. ($1k + $400 for each lender)
Money Tree is nothing but a lead generating service for lenders . They are not a lender like most people think. Money Tree works with any mortgage broker, bank, etc. that wants to buy their leads. The reason their rates are sometimes (note SOMETIMES) better is because they have several banks or mortgage brokers lowballing their good faith estimates so they don't spend the $400 for the lead in vain.
You can cut the middleman out (Money Tree) and go directly to a mortgage broker or bank for your loan.
Another thing to consider when using Money Tree, Bank Rate, or any other online lead generation company is just that....they are a LEAD GENERATION COMPANY and are in the business of selling leads. They often sell or rent their customers information several times after the initial $400 lead sale. So...this may lead to other unsolicited calls or mailings from other lenders in the future.
The bottom line is..read the fine print when using services that promise the world. I'm not bashing Money Tree, often times they will get people the best rate, but remember that your information is sold to several sources who don't like to give up on a lead that they pay big bucks for.
Just something to keep in mind for the future.