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MORTGAGE FEES
It is 100% free to apply for any type of home loan with Star Loan
Services. Below is a breakdown of the fees and costs of
home
purchase mortgages.
The fees associated with every loan are going to be different for
each applicant. If
you have any questions,
contact us.
Monthly Payments
Consists of the principal and interest of your loan. In certain
states, you can opt to have your insurance and taxes added into the
monthly payments. In some states, insurance and taxes are mandated to
be included as part of your monthly payments. When this is the case,
the funds are placed in an escrow account by Star Loan Services.
You can also choose to have the 'closing costs' rolled into your
monthly payments. Meaning, you can borrow with no 'out of
pocket' expenses.
Loan Origination Fee
This fee is charged by all lenders. Loan Origination Fee is one
percent of your loan amount, otherwise known as a single point. For
example, if you are borrowing $200,000, your loan origination fee
would be $200,000 x 1% - $2,0000.
Loan Processing Fees/Closing Costs
All of the fees listed below can be rolled into your monthly
payments. These fees are going to vary, depending on the type
of loan you apply for an how much you are borrowing.
Lender Fees
-- Origination fee - Starting of loan.
-- Appraisal fee - Getting price of house that is being
purchased.
-- Credit report - Finding out your
credit score.
Learn
how your credit score is computed.
-- Underwriting fee - Writing up your mortgage.
-- Document preparation/review fee - Getting all paperwork
ready and making sure that all of the information listed is correct.
-- Tax service fee - Confirms the payment of real estate taxes.
-- Mortgage insurance/PMI - Protects Star Loan Services in
case you fail to make your mortgage payments.
--
Title Fees
-- Attorney's fees
-- Title insurance - Protects the buyer from mistakes in
the title.
-- Transfer tax (excludes refinances) - Taxes paid when
title transfers from one owner to the next.
-- Recording tax - Fee paid to local government
for filing your mortgage in public records.
Miscellaneous Fees
-- Property survey - Determines the boundaries of the
property.
-- Termite inspection - Checks for the presence of termites.
Prepaid Fees (not part of the actual cost of the loan)
-- Prepaid interest - Interest that compiles from the date
you close to the end of the month that you closed in.
--
Homeowner's insurance - Covers any damages
that may have an affect on the value of your home. Get more
info on
choosing the right homeowner's policy.
-- Real estate taxes - Property taxes set by your local
government.
The
closing costs of refinancing are similar to purchase loans.
When buying a home, it is important that understand how
mortgage rate locks work.
Related Reading:
Buying vs. Renting
Your Credit Report and Your Mortgage
Cosigning Mortgages
Fair Market Value
Buyer's Market
vs. Seller's Market?
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