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TERM
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DESCRIPTION
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AVERAGE COST
|
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Loan Origination Fee
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This fee covers the lender’s administrative cost in connection with the loan.
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1% of the loan amount
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Discount Points
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A one-time charge used to adjust the yield on the loan to market conditions.
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Each point equals 1% of loan amount
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Appraisal Fee
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A fee for a statement of property value made by and independent appraiser.
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$300-$500 conv. loan; $300 VA loans; $400 FHA loans
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Credit Report
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A report obtained from a credit-reporting agency detailing the borrower’s credit history.
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$50-$75
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Interim Interest
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Interest collected on the loan from date of closing for the balance of the calendar month when closed (except when the closing takes place on the 1st day of the month).
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Depends on remainder of loan amount
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Mortgage Insurance
(PMI)
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Generally required on mortgages with a loan-to-value ratio of 80% and up. Mortgage insurance protects the lender from loss due to payment default.
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Premiums vary with coverage
|
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Hazard Insurance
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Lenders require a fire (and extended coverage) policy covering at least the amount of the mortgage. If the property is in a flood prone area, flood insurance is mandatory.
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First year premium is paid at closing
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Escrow Deposits
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Funds held in an account by the lender to assure future payment for such recurring items as real estate taxes, hazard insurance and mortgage insurance.
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2 mos. hazard insurance;
2 mos. mortgage insurance;
5 mos. taxes (average)
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Attorney Fee
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The closing is normally handled by the Buyer’s attorney who is responsible for obtaining title insurance, handling and computing the closing statement (including all prorations and adjustments) and recording pertinent documents. The deed is normally prepared by an attorney selected by the seller. The Seller often chooses to use the Buyer’s closing attorney for preparation of the deed.
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$450-$600
|
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Title Insurance
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Protects against loss due to problems or defects in the title, which cannot be found or aren’t found on public record. Title insurance cost is borne by the Buyer. It is a one-time fee payable at closing.
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$1 per $1,000 of coverage +$90
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Recording Fees
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Recording fees for deed, deed of trust, and any and all other documents.
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$85
|
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Survey
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A survey shows the exact locations of the house and the lot line, along with easements, buffers, and setback lines.
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$200-$300
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Home and Termite Inspection
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The Buyer’s option to have a home inspection per Provision 12. A report from alicensed pest control operator stating as to the evidence of wood-destroying insectsand resulting damage.
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$200-$450 home inspection;
$75 termite inspection
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Commitment Fee
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Paid to lender/investor at closing to cover the cost of underwriting the loan and issue loan commitment.
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$250-$600
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Tax Service Fee
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One time fee paid to a company that handles the payment of real estate taxes fromthe lenders escrow account.
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$50-$90
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On the other hand, if you are a Real Estate Professional and you would be interested in keeping more of the profits originating from all the home loans you initiate, you can Become an Associate of My Team by filling out the form on that page.
In order to find out what your best loan options are, you can start the process by visiting my Loan Helper page and when you submit your contact information in the form on that page, that will let me know you are interested in finding out how I can help you.
