Mortgage fees
The fees for obtaining a mortgage vary by state and locality, the lending institution, the type of loan you are getting, the amount of the down payment, the amount of the loan, your credit history, the type of property you are buying, the current rates of interest, commissions the lender is paying, and other factors.
You can generally save money, or get a deal best suited to your needs, by getting competitive quotes.
You can deal with a lender directly, or use a mortgage broker, who deals with a number and variety of different institutions.
Many people qualify for government backed loans, that may be easier to obtain than a privately backed loan, or may carry lower charges or interest fees.
A typical mortgage on a home costs about 2% to 4% of the loan amount. This does not include any monthly payments or escrow amounts advanced to the lender. Nor does it cover any points paid on the loan.
Some typical costs associated with getting a loan to buy a home include:
Loan origination fee of 1% to 2% of the loan
A new appraisal is required on most loans.
$300 to $600
"Loan Processing Fees" of $300 to $700.
Hiring a closing agent. $300 - $500
A credit report for the lender. $20 to $40
"Administration or underwriting fee" of $300 - $1,500.
A lender's title insurance policy - $300 and up.
Government recording fees - $30-$150.
Courier fees - $30 to $100
Private Mortgage Insurance - a small fee for setting up this insurance.
Home and Flood insurance - the first payment on these insurances - $200 and up
Death and Disability Mortgage insurance. Not always purchase, but the initial monthly fee is $80 and up.
You'll also have to pay any unpaid or prepaid property taxes.
Prepaid interest. From the day of purchase, until the first day of the next month.
Courier and delivery fees. $50 - $150.
A property survey may be required. $200 and up.
A legal review for the borrower of all the documents and costs. $80 - $350.
Transfer taxes. Based on the price of the property.
Points on the loan. - 0% to 4% of the loan amount.
Monthly payments on the loan may also include:
The principal and interest repayments
Property Taxes
Home and flood insurance
Private mortgage insurance
Death and disability mortgage insurance
