mortgage settlement costs
When you go to settlement on purchase of real estate, there a number of fees and expenses presented at closing. Some of these are associated with the mortgage. Others are associated with taxes, insurance, escrow fees etc. Typical of those associated with the mortgage, and what might be considered a typical amount (but they can vary widely) are:
Loan origination fee...............................Up to 1% of the mortgage amount
Appraisal fee (for having the property appraised)................$ 300
Credit reports (to verify that you are credit-worthy)............$ 50
Title company fees.....................................................$ 300
Title insurance.......................................½ of 1% of the mortgage amount
Underwriting fees......................................................$ 300
Document preparation fees..........................................$ 250
Tax service fees.........................................................$ 75
Recording fees...........................................................$ 150
Processing fees..........................................................$ 250
Mortgage interest for the current month.....Varies with settlement date
Private mortgage insurance.......................0-3/4 percent of the loan amount.
Again, the amounts shown are typical but in no way represent what YOU will be paying on your specific mortgage.
Just to remind you, there are also settlement costs outside the direct costs associated with the mortgage. Typical costs are:
State taxes (if applicable)..........................................Varies by state
Property survey (if applicable)....................................Typically $300
Down payment.............varies, typically 10 to 25% of the property value
Real estate property taxes in advance...........................Varies
Discount points..................................0-3 % of the mortgage amount
Home owner’s insurance in advance, varies.......25% of the property value annually for example
Homeowner’s association dues, if applicable, in advance.........Varies
Condominium association fees, if applicable, in advance..........Varies
Your attorney’s fees....................................................Varies
The above list is not necessarily complete. It is presented to give you an idea of the many costs you can expect to see at the settlement table. Your broker or lender should give you a list of the settlement costs in advance of settlement. This list is know as a Good Faith Estimate of Settlement Costs. It is advisable to have some extra funds available at settlement, just in case there are some mistakes.
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