Closing Costs

With the current mortgage rate drop, applications have really picked up. With this many refinance applications come numerous closing cost questions.
This is the subject of today's post.
A big misconception is that your lender is charging you all of these fees. This is not the case. All you need to do is look at your Good Faith Estimate and more importantly your HUD to see where these fees are going.

Typical fees are as follows:

Appraisal
Title Charges (Title insurance, closing fee, and misc charges)
Recording Fees
UW fees
Processing Fee
Credit & Courier
Daily Interest
Taxes
Insurance
Escrow Account Pre-paids


The processing fee, credit, and courier are the only fees going to your broker. All the others go to appraisers, title companies, insurance agents, etc..

Some brokers charge broker fees or origination fees. You just have to look for those.

Many people also overlook a huge part of these costs. These are pre-paids. Most people want to setup an escrow account to pay their taxes and insurance. Depending on the time you close, it can be $1000 + to set this up. This is money you are paying either way, it just must be setup at the closing for your new loan.

This is just a brief overview of closing costs. Don't be shy in asking your broker or lender about them. A good broker will explain everything listed in detail. There should be absolutely no surprises when in comes to these fees.

Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"