Except i'd then need to find a 3rd party to deposit my LTCs into, then convert to BTC, then rewithdraw, so i'd have to pay 2 party to get my BTCs. I figured that would be worse than paying 0.001 BTC.
Is there a cheaper way to go about it?
Regular BTC transaction fee is 0.0001 per KB, which comfortably fits one typical transaction. Exchanges typically charge more than that, but 0.001 seems on the high side. I would suggest to find an exchange that has lower withdrawal fees. Cryptsy is 0.0005 I think, there might be lower ones, but also keep in mind liquidity, LTC/BTC rates, and trading fees. Also consider whether your time is worth more than the ~0.30 USD you might or might not save doing it via another exchange.