There are no rip-offs in getting a mortgage, only naive individuals who fail to do their basic homework before hand.
A mortgage is probably the most complex financial transaction people engage in for themselves, yet these same people barely understand the basics.
1) the lender will charge the borrower for all of the paperwork costs, such as title search, doc prep, appraisals, etc.
2) the interest rate on the promissory note will depend on credit-worthyness and how much equity the borrower has in the property.
3) 'points' can be paid to lower the interest rate, but this requires a level of sophistication, on top of good predictions about the time expected to live in the house to recover the cost of the points
4) most borrowers ignore the lock-in term, which is a critical element in getting the best rate. The shorter the lock-in term, the better the interest rate. Think about it, rates can move against the lender if the term is long, such as 60 days, but if it is only 15 days, there is less chance of rates changing in that shorter time, so the lender is willing to give you a slightly better deal.
There are other issues too. The best advice is to educate yourself with a good book on the subject at the library, before ever engaging a professional who has their own profit motive.
years of experience working as a mortgage banker