Closing Costs--Loan
Loan Origination Fee
This covers the administrative expenses in setting-up and processing the loan. The loan origination fee may be a percentage of the mortgage amount. Points (optional) An option for the home buyer is to pay points to lower the interest rate at which the loan will be repaid. Each point equals 1 percent of the mortgage amount. For example: on a $150,000 loan, 1 point would equal $1,500. Appraisal Fee The fee for having the house appraised may be incorporated into the closing costs or payment may be required by the lender at the time the loan application is submitted. Credit Report The lender uses a credit report to determine the creditworthiness of the loan applicant. This fee is often paid when the loan application is submitted. Interest Payment Typically the buyer is required to pay interest on the mortgage loan to cover the time between the closing date and when the first mortgage payment period begins. For example: If closing is on May 15. Your first monthly payment begins to accrue interest on June 1 with your first mortgage payment due July 1. At closing an interest payment covering the accrual period between May 15 and May 31 may be required. Escrow Account At closing a payment may be required to fund the escrow account if the lender is paying home insurance, property taxes and/or other expenses out of the escrow account.
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Whether you are looking to buy, refinance or receive equity from you home, my team has the perfect mortgage loan for any stage of your life. We are mortgage experts and work to understand your unique financial goals and help you make an informed decision about choosing a mortgage that fits your lifestyle. My mission is to carefully guide you through the entire mortgage loan process, so that you feel confident as you make choices about the many options available for your financing strategy.
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