
LOAN-RELATED
CLOSING COSTS
Loan
Origination Fee
This
covers the administrative expenses in setting-up and processing the loan.
The loan origination fee may be a percentage of the mortgage amount.
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
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.
Credit
Report
The
lender uses a credit report to determine the creditworthiness of the loan
applicant. This fee is often paid when the loan application is submitted.
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.
Escrow
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.
Return
to Closing Costs
Call
Anchor Realty Services, LLC at (561) 373-0407 or
E-mail: [email protected]
if we can help you to sell or buy a home!
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