Mortgage Related Closing Costs

The cost of getting the mortgage is rolled into the closing costs by the lender. This may include:

• Application Fee: A fee that covers the processing of your loan application as well as checking your credit report.
• Appraisal Fee: The is the fee charged by an independent appraiser to appraise the value of your house.
• Survey: Often a lender will require independent verification that your lot has not been encroached upon by any other structures or that the boundaries of your property are legally what the seller says they are.
• Loan Origination Fees & Points: The origination fee is charged by the lender for their work in evaluating and preparing your loan. Discount points are prepaid finance charges to increase the yield to the lender beyond the stated interest rate. One point equals one percent of the loan amount. In some cases points can be financed by adding them to the loan amount.
• Mortgage Insurance: If your down payment is less than 20%, you are required to carry mortgage insurance. This covers the lender’s risk should you fail to make the loan payments.
• Homeowner’s & Hazard Insurance: This policy protects your home and its contents from damage by fire, wind, vandalism and other causes. The lender will expect this to be in place at the time of closing.

Mortgage Calculator l The Lowdown on Down Payments l A word about Credit Histories l Other Considerations l Mortgage Related Closing Costs

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