Closing Costs
Closing Costs are actually broken into four categories:
Remember When Shopping for A Loan:
- The interest rate affects the lender’s closing costs: higher rate, lower costs; lower rate, higher lender costs.
- The lender only controls the first column. Additional fees, better known as junk fees, can be added by a lender to improve their profit margin on any given mortgage.
- Costs listed below reflect MHA closing costs for a mortgage.
Lender Fees
| Fee | Average Cost |
Origination Fee 1% |
1% of loan amt. |
Processing Fee |
$200 |
Funding Fee |
|
Additional Lender Fees. These could be called “File Review, Commitment Fee, 3rd Party Underwriting Fee” |
|
Underwriting Fee |
$225 |
Fees Paid to Others
| Fee | Average Cost |
Appraisal Fee |
$325-375 |
Credit Report |
$16/Borrower |
Recording Fees |
$35 |
Inspection Fees |
$200+- |
Termite Inspection |
$65-$100. |
Title Company Fees
| Fee | Average Cost |
Closing Fee |
$200 |
Document Preparation |
$200 |
Lender’s Title Insurance |
$225 |
Courier, Mailing |
$50-100 |
Pre-Paid and Escrow Item
| Fee | Average Cost |
Homeowner’s Insurance |
.68 -.85% of Sales Price: 1 Year Premium at closing |
Tax Escrow |
2.5% of Home Value: 2 months |
Insurance Escrow |
2 Months of Premium |
Pre-Paid Interest |
Interest from the date of closing to the end of the month |
Survey |
$400 Seller may have one |
