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Home Mortgage Loan Costs


Home Mortgage Loans | Home Refinancing


Mortgage Costs | Mortgage Types | Reverse Mortgages

The costs and fees listed below are the charges you are most likely to encounter when obtaining a home mortgage.  These amounts may vary greatly between lenders and in different areas, so the following ranges are only estimates.  Your actual closing costs and fees may be greater or less than those shown below.  In addition, you may be charged for certain other types of closing costs.

Application Fee $100 to $300
Appraisal Fee $150 to $400
Survey Costs $125 to $300
Homeowner's Hazard Insurance $300 to $600
Attorney Review Fees $100 to $200
Title Search and Title Insurance$450 to $600
Home Inspection Fees $200 to $400
Loan Origination Fees 1% of loan
Mortgage Insurance 0.5% to 1.0%
Points 1% to 3%

Some of the costs and fees listed above, such as survey costs, are self-explanatory, but we will briefly describe some of these charges which are less familiar to many people.

  • An Application Fee is imposed by your lender to cover the initial costs of processing your loan request and checking your credit report.
  • The Appraisal Fee pays for a documented appraisal, which is an estimate or opinion of the property value.
  • Title Search and Title Insurance are required to cover the cost of examining the public record to confirm ownership of the real estate.  It also covers the cost of an insurance policy which insures the policy holder in a specific amount for loss caused by discrepancies in the real estate title.
  • Attorney Review Fees are imposed by the lender for fees paid to the lawyer or company which represents the lender at the closing.  Settlements are conducted by lending institutions, title insurance companies, escrow companies, real estate brokers, and attorneys for the buyer and seller.  In most cases, the person conducting the settlement is serving the lender.  You may also be required to pay for other legal services relating to your loan.  Furthermore, you may wish to retain your own attorney to represent you at all stages of the transaction including settlement.
  • Loan Origination Fees are charged for the lenders' work in evaluating and preparing your mortgage loan.
  • Points are prepaid finance charges imposed by the lender at closing to increase the lender's yield beyond the stated interest rate on the mortgage note.  One point equals one percent of the loan amount.  For instance, one point on an $80,000 loan would be $800.  The number of points a lender charges often depends on market conditions.
  • Mortgage Insurance is required for certain types of loans.  For instance, you may be charged a fee for a VA loan guarantee, FHA mortgage insurance, or private mortgage insurance.

home mortgage fees, insurance premiums, and settlement charges
Sample fees, insurance premiums, and other costs associated with a mortgage loan.

A well informed consumer is usually better able to make sound financial choices.  If you are considering buying or refinancing a home, we trust you have found this overview helpful.  However, this article is no substitute for professional advice.  Do consult with real estate agents, attorneys, mortgage lenders and other financial advisors whom you trust before you commit to a specific home mortgage.

Home Mortgage Lenders and Services

  • Quicken Loans
    This online mortgage lender offers a wide range of mortgages and loans for home buyers and home owners in all 50 states.

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Home Mortgage Costs – Mortgage Loan Fees

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