FEE COVERS |
Title Search and Title Insurance |
This is a legal requirement all lenders must meet
in issuing a new mortgage. The title
Title Insurance search confirms that no outstanding claims exist
against the property, and that the insurance guards the lender against
mistakes made in the search.
Tip: Be sure to ask if the company holding the present title insurance
policy can re-issue your policy at a re-issue rate. This could save
you up to 70%. (Your current lender can tell you which company is
holding your policy.) |
Application Fee |
This fee covers the lender's initial processing costs
and credit report fees. |
Appraisal Fee |
Your home must be appraised again to verify its current
value. This fee will cover the cost of that independent appraisal. |
Loan Origination Fee |
This fee covers all the costs associated with processing
the loan. |
Points |
One point is 1% of the value of the mortgage. Another
way to define a point is as a pre-paid finance charge, payable when
you close on your mortgage loan. Generally, the more points you
pay, the lower your interest rate. |
Closing Agent and Review Fees |
Most lenders charge a fee for the services of the
closing agent. You may also be charged for other legal services
involved in completing your loan. |
Prepayment Penalties |
Some mortgages carry a penalty for paying off a loan
before the stated term is up - and it can be quite substantial.
If your mortgage is less than 10 years old, the chances of such
penalty slim. Check your original mortgage for information. |
Other Costs |
Depending on your mortgage, you could also be charged
fees for a VA loan guarantee, FHA or private mortgage insurance,
and a variety of other possible costs. |
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