Questions
About Mortgage Costs
What
will a loan cost?
Your monthly payments go partly to repay your loan
and partly to pay the fees for your loan, many of them
relating to the closing or settlement.
Most lenders require an up-front application fee to
cover their expenses as they approve you. But, National
Mortgage Center doesn't. That's right - with us, it's
free to apply!
Additionally, lenders charge a loan origination fee.
It's generally expressed as a single point (a point
is defined as 1 percent of your loan amount). For example,
if you were borrowing $100,000, your loan origination
point would be $1,000 ($100,000 X 1%).
The typical fees that cover the loan processing and
closing are:
Lender Fees
Title charges
Miscellaneous charges
-
Property survey
-
Termite inspection
Prepaid expenses (not part
of the actual cost of the loan, but included with payment)
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What
are the costs that are included in my loan payment?
At the least, your loan payment will consist of the
principal and interest for one month. In some states,
you may elect to have your insurance and taxes prorated
and added onto the monthly cost. In other states, it
may be required that you pay for insurance taxes as
part of your monthly loan payment. This money would
be placed in an impound or escrow account by the lender.
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What
are the appraisal costs?
For all first mortgages, National Mortgage Center pays
the appraisal cost and doesn't charge you until your
loan closes. National Mortgage Center will hire the
appraiser. Most lenders pass this cost on to you immediately.
The appraisal determines the value of the property in
question, which becomes a prime factor in determining
the loan-to-value (LTV) ratio (the amount of your loan
divided by the value of your property). Your LTV is
important because it determines your equity in the property.
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What
mortgage closing costs will I pay?
National Mortgage Center offers loans with and without
closing costs, depending upon what type of loan you
want and the amount of money you are borrowing.
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What
does rolling in these fees mean?
National Mortgage Center gives you the option of rolling
these funds into your loan amount. This allows you to
get your loan with no out-of-pocket expense, but your
loan amount will be slightly higher. The alternative
to rolling the costs into your loan is to provide these
funds yourself when the loan closes. You'll be borrowing
a smaller loan than with a roll-in, but you will incur
immediate out-of-pocket expenses.
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