ITEM

DESCRIPTION

AVERAGE COST

Loan Origination Fee

Covers lender's administrative costs

1% of loan amount

Discount Points

One-time charge used to adjust yield on the loan to market conditions

Each point equals 1% of loan amount

Appraisal Fee

Fee for a statement of property value made by an independent appraiser

$400-$600 (residential versus investment properties)

Credit Report

Report from a credit agency detailing the buyer's credit history

$50-$75

Interim Interest

Interim interest is collected on the loan from the date of closing through the end of the month (except when closing takes place on the first day of the month).

Will not exceed monthly payment.

Private Mortgage Insurance (PMI)

Required on mortgages with a loan-to-value ratio of 80% and up. Protects lender from loss due to payment default. May be paid in full at closing or as part of the monthly payment, as determined by lender.

Varies with coverage.

Hazard Insurance

Fire and extended coverage policy for at least the amount of the mortgage. If the property is in a flood prone area, flood insurance is mandatory.

Varies with coverage. First year premium required at closing.

Escrow Deposit

Funds held in an account by the lender to assure future payment of taxes, insurance and other recurring items.

2 months hazard and mortgage insurance. Taxes vary with time of year, 5 months is average.

Attorney Fee

Fee charged by the buyer's attorney for handling closing, including obtaining title insurance, handling and computing closing statement, and recording pertinent documents.

$650-$675 for cash closing, and $950-$975 for closing with a loan

Title Insurance

A one-time charge which protects against loss due to title problems not found in public records. Required by lender.

A bit more than $2 per $1000 of coverage

Recording Fees

Recording fees for deed, deed of trust and any and all other documents

$75

Survey

The survey shows the exact locations of house and lot line, easements, buffers and setback lines.

$400 average, will be more for very large lots

FHA Mortgage Insurance (for FHA loans)

Mortgage insurance required by HUD. May be paid at closing or financed with loan amount.

.0225 x loan amount (if financed)

Funding Fee (for VA loans)

Fee charged by the Veteran's Administration on all VA loans

2% of loan amount if veteran pays no down payment; 1% if 5% down payment; 1% if 10% down payment/ 3% if veteran has used VA prior funding, not putting down minimum of 5%.