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%. |