Loan-Related Closing Costs

Loan Origination Fee         (None)
This covers the administrative expenses in setting-up and processing the loan. The loan origination fee may be a percentage of the mortgage amount. This fee is considered points and is optional/negotiable.

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  (case by case)
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.  An appraisal is not always required for the financing of a the collertal.

Credit Report      (no charge)
The credit report is utilized to obtain your credit scores, payment history, montly balances and payments and any derogitory information which will affect the pricing or qualification process.  More report fees are applicable, if other credit reporting services are performed. 

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.

Lender Escrow Account aka Impound 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.  These impounds should not exceed 2 months.  Depending on when the renewal periods are the lender may require more, to make a 12 month period of payments. 

Lender Cost            (None)                                                                                                      Lenders fees normally range from $300 to $800. The lenders have an Underwriting fee, Tax Service fee, Flood Certification Fee and a Document Preparation Fee. 

Zero Cost Loans

This is where we bump up the rate to cover the cost of the loan getting money back from the lender to pay for your closing cost.  Then at closing you can either elect to roll in the prepaids (taxes, insurance) or come out of pocket at closing.   Keep in mind that other lenders/brokers will still ding you with their junk fees while having to increase the rate more to cover their junks fees.   But with DeBorah Fu, I don't have junk fees, so I don't have to push the rate higher to cover those unnecesary fees.