Loan-related Closing Costs

Loan Origination Fee

This fee is a charged for the service that is provided to broker the loan.

Points (optional)

Buyers can opt to pay points to buy down the interest rate.

Appraisal Fee

This fee is paid to a certified property appraiser who visits the property and appraises the value. The fee may be included in the closing costs (if it is a refinance) otherwise payment will be required at the time the loan application is submitted.

Processing Fee

We have a standard fee that covers the processing of the loan, this fee includes credit report fees, and all other administrative fees.

Lenders Fees

The lender typically charges fees to underwrite and process the loan.

Interest Payment

Interest is charged from the date of closing until the last day of the month. For example: If you close on January 15 then you pay interest at closing from the 15 to then end of the month. However your first mortgage payment would then be due on March 1.

Escrow Account

This account is generally used for payment of property taxes and homeowners insurance. Lenders usually require payment at closing to set up the escrow account.

Property Taxes

Property taxes are usually prorated between the buyer and seller.

Transfer Taxes and Recording Fees

These fees relate to the cost of transferring ownership and recording of documents.

Homeowner's Insurance

This insurance covers replacement cost for damage caused by fire, wind or other damage that might affect the property value.

Flood Insurance

This insurance covers homes located in a designated flood zone. The Federal Emergency Management Agency (FEMA) establishes the areas that are designated flood zones.

Private Mortgage Insurance (PMI)

PMI is charged on conventional loans when the loan amount is more than 80% of the loan to value. PMI can be lender or borrower paid.

Title Insurance

Title insurance protects the borrower and the lender with an insurance of clear title.

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