|Closing Costs (U.S. Average)|
||Fees lender's charge upfront in exchange for a
lower interest rate, with each point equaling 1%
of the amount of the loan. Typically, the more
points paid up front, the lower the interest rate
on the loan.
||It is not at all uncommon for lenders to charge an
application fee. Negotiable.
||Banks term for underwriting fee. Fee charged to
have your loan reviewed by an underwriter. Also
known as a "junk" fee. Negotiable.
||Covers the preparation of final legal documents,
essentially a way to extract more money from
the borrower and put a label on it. Negotiable.
|Mortgage broker, origination
or lender fees
||Fees charged by brokers to arrange the
financing of your mortgage. This is justified by
representing you and finding you a competitive
||Much like the underwriting fee, this cost is
associated with processing your loan.
||Issue tax certificates showing current years
taxes, when they were paid last, and any
||Fee charged to have your loan reviewed by an
underwriter. Also known as a "junk" fee.
||Fee to get money from the lender to the
||The lender will require an appraisal from an
|Attorney, closing or settlement
||Fees paid to an independent attorney for
reviewing the closing papers.
||Just about all lenders make this fee a
||Service that tells the lender whether the property
is in a flood area or not. This could trigger the
need for flood insurance.
|Pest and other inspection
||An examination of property for things like,
termite inspection, and whether required
changes were made prior to funds being
|Postage / courier
||Fees associated with the delivery of documents.
||Not all lenders require a survey.
||The lender will most certainly require title
insurance to guarantee the title, regardless of
what the title work turns up.
|Title work: Title search, plat
drawing, name search,
||Title work is conducted to make sure there are
no unpaid mortgages, defective title or tax liens.
|Total average fees
||Based on a $200,000 loan amount. U.S.
average* total closing costs. Some fees are
omitted from the total, as not all lenders charge
for each and every item.