They happen all the time… and most of the time we just don’t notice. Hidden fees are incredibly common in business transactions, specifically those that involve large sums of money. Just purchase a car? Take a look at the line items for that extra $50 charge. Buying a home? Some mortgage companies will sneak in a number of line items that we aren’t even aware of.
When purchasing my second rental property I looked at the closing disclosure only to notice a $100 fee for the power of attorney that was being drawn up. That fee wasn’t even discussed and made it onto the CD. A friend of mine noticed a $100 “administration fee” during a recent home purchase. After asking the title company what it was, they quickly removed it without any questions. Companies often realize that if your transaction is for thousands of there is a good chance that you won’t notice the extra $40 here or there. It’s a common business practice that actually resulted in a few banks getting into legal trouble.
To spread awareness as to what these fees look like, we’ll take a look at 10 below. Be sure to remain vigilant when making big purchases. These are worth knowing!
- Cleaning Fees: Next time you check out or pay for your AIRBNB, be sure to look at the whole price. The cleaning fee could add up to an extra $100 to your trip.
2. Loan Origination Fees: Purchasing a home? Take a look at the loan origination fees and compare it to other companies. If it seems a bit outsized, it might just be.
3. Service Charges: Looking to buy tickets to the big game. Service charges and convenience fees quickly add up to make for an expensive trip!
4. Processing Fees: If you purchase a car, take a look at the line-by-line for charges. Title fees are standard, but processing fees are not.
5. HOA Fees: The sticker price on that condominium might look really good, but take a look at HOA fees. Depending on where you are, they could be as much as $1,000 monthly.
6. Paper Statement Fees: In the digital era, mailing items comes with a cost. Check for paper statement fees before you agree to receiving them.
7. ATM Fees: Using an out of network ATM? Look out for surcharges of as much as $5.
8. Airline Miles Redemption Fees: Airlines might charge for you to redeem those miles. Look at the fine print before you do so!
9. Balance Transfer Fees: While it’s not recommended that you carry a credit card balance, balance transfers may make sense in some situations. Look out for fees when you make that transfer though!
10. Annual Fees: As a member of the military, you get a number of fees waived for banking, credit cards, and other services. Be sure to do your due diligence prior to assuming your fee is waived. It will pay off!
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