Loan-Related Closing Costs

***Always Keep One Thing In Mind
When shopping for the best possible mortgage loan, there is absolutely NO such thing as the "Mortgage Goose That Lays The Golden Loan". When you see giant billboards with ridiculously low rates, or talk to someone that promises you something that is ridiculously too good to be true, keep in mind the one word both have in common...Ridiculous!! For the most part, all mortgage loans are "sold" to Wall Street. And Wall Street has very strict guidelines on what they will "buy".Our staff at Forefront Mortgage will provide you with real answers and real numbers.

Points (optional)
An option for the home buyer is to pay points to lower the interest rate at which the loan will be repaid. Each point equals 1 percent of the mortgage amount. For example: on a $150,000 loan, 1 point would equal $1,500.

Appraisal Fee
The fee for having the house appraised may be incorporated into the closing costs or payment may be required by the lender at the time the loan application is submitted.

Credit Report
The lender uses a credit report to determine the credit worthiness of the loan applicant. This fee is often paid when the loan application is submitted.

Interest Payment
Typically the buyer is required to pay interest on the mortgage loan to cover the time between the closing date and when the first mortgage payment period begins. For example: If closing is on May 15. Your first monthly payment begins to accrue interest on June 1 with your first mortgage payment due July 1. At closing an interest payment covering the accrual period between May 15 and May 31 may be required.

Escrow Account
At closing a payment may be required to fund the escrow account if the lender is paying home insurance, property taxes and/or other expenses out of the escrow account.