MORTGAGE LOAN FEES

What Fees are Associated with a Mortgage Loan?

There are a number of fees that a borrower may encounter when finalizing a mortgage loan for a real estate purchase or a refinance. We’ve compiled a list of fees that are part of the settlement for a JS Realty Mortgage application form with a calculator and house.mortgage loan. The fees can be separated into several categories: lender fees, escrow deposits, prepaid items, title fees, government recording and transfer fees, and additional settlement fees.

LENDER FEES

-Origination Charges – these are comprised of fees charge by the lender to process and underwrite the loan
-Discount Points – these are charges to the borrower for a particular loan interest rate or certain loan program
-Credit Report – fees charged to run a credit report for the borrower
Appraisal fee – cost to have a licensed professional provide a market value of the property
-Flood Certification Fee – this is needed to determine if your property is located in a flood zone and if flood insurance is needed on the property

PREPAID ITEMS

Daily Interest Charges – interest is paid from date of settlement through the end of the same calendar month
Homeowner’s Insurance – initial premium is paid upfront
Mortgage Insurance (if necessary)

INITIAL ESCROW DEPOSITS

Property Tax Fee JS RealtyMost loans require the borrower to pay for property taxes and homeowner’s insurance on a monthly basis as part of the mortgage loan payment. When property taxes are due (typically twice a year), and homeowner’s insurance (annually) the lender will pay the bills out of the escrow funds.

TITLE FEES

-Settlement fee – Charged by the settlement company for preparation of closing documents and conducting the closing.
-Lender’s title insurance – cost of insurance covering the amount of the loan. This is required by the lender and covers title issues for the life of the loan.
-Owner’s title insurance – OPTIONAL coverage for the owner’s to protect against any tile claims on the property. This policy will protect the owner’s forever.

GOVERNMENT RECORDING AND TRANSFER FEES

JS Realty Calculating Money Finance FeeGovernment Recording Fee – fee charged by government to record the deed of trust
Transfer Taxes – basically a sales tax that is paid to the local government as well as the state government

ADDITIONAL SETTLEMENT CHARGES

There can be several “additional” fees associated with a loan. Here are a few:

-Pest Inspection
-Survey
-HOA/Condo Transfer fees
-HOA/Condo dues

JS Realty Keith Harris
Keith Harris
NMLS # 838973

If you have any questions about a loan, or would like clarification on any of these charges or fees associated with mortgage loans, please contact our preferred Lender, Keith Harris at Intercoastal Mortgage Company.

 

 


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Jenna Charpentier

Author: Jenna Charpentier

As the Creative Marketing Director, Jenna has more than 15 years of administrative, customer service, and marketing experience across a number of diverse industries. If she's not blogging or posting memes on social media, she's probably running around after her two young kids.