Posted on: 06th Apr, 2004 11:41 pm
Appraisal Fee
A fee charged by the appraisal to verify the value of the real property that supports the loan amount is known as an appraisal fee. The lender generally passes it to the borrower.
Application Fee
A fee charged by the lender, mortgage broker or mortgage banker to a borrower for accepting a mortgage loan application and estimating initial mortgages processing expenses. The fee may include the cost of obtaining a property appraisal, a credit report, and a lock-in fee or other closing costs incurred during the process or the fee may be in addition to these charges. Payment of this fee does not guarantee that a loan will be approved. It may or may not be refundable if the lender declines the loan.
Underwriting Fee
It is a fee charged by the lenders to:
Origination Fee
Origination Fee is a fee charged by the lender to cover the administrative costs in processing the loan.
For example, cost to prepare loan documents, check a borrower's credit history, inspect and sometimes appraise a property. It is often expressed as a percentage of the face value of the loan. The fee varies among lenders.
Exam Fee
Exam Fee is a fee charged by a title company for inspecting the public records and title abstracts, to determine the chain of ownership of a property.
Assumption Fee
It is a fee charged by the lender to process the paperwork and update the records when a buyer takes responsibility for a mortgage from the seller. The fee covers the processing and administrative costs for a buyer to assume an existing loan. The charge can be a fixed amount; normally $500, or perhaps a percentage of the outstanding balance, for example, one percent. The assumption fee is paid to the lender at the time of settlement or closing.
Administrative Fee
Administrative Fee is a fee charged by the lender to cover the administrative costs of processing the loan. This fee is generally considered as a lender fee.
Release Fee
Release Fee is a fee charged to release a lien to free real estate from a mortgage.
Taxes and Other Unavoidable Fee
These fees include the State/Local Taxes and Recording Fees and have to be paid regardless of the lender you choose and regardless of that the lender asks you to pay or not.
A fee charged by the appraisal to verify the value of the real property that supports the loan amount is known as an appraisal fee. The lender generally passes it to the borrower.
Application Fee
A fee charged by the lender, mortgage broker or mortgage banker to a borrower for accepting a mortgage loan application and estimating initial mortgages processing expenses. The fee may include the cost of obtaining a property appraisal, a credit report, and a lock-in fee or other closing costs incurred during the process or the fee may be in addition to these charges. Payment of this fee does not guarantee that a loan will be approved. It may or may not be refundable if the lender declines the loan.
Underwriting Fee
It is a fee charged by the lenders to:
- Meet the cost of analyzing the risk associated with a loan.
- Verify information on the loan application.
- Validate the property's worth as collateral and,
- Make a final decision on whether or not to grant a loan to the applicant.
Origination Fee
Origination Fee is a fee charged by the lender to cover the administrative costs in processing the loan.
For example, cost to prepare loan documents, check a borrower's credit history, inspect and sometimes appraise a property. It is often expressed as a percentage of the face value of the loan. The fee varies among lenders.
Exam Fee
Exam Fee is a fee charged by a title company for inspecting the public records and title abstracts, to determine the chain of ownership of a property.
Assumption Fee
It is a fee charged by the lender to process the paperwork and update the records when a buyer takes responsibility for a mortgage from the seller. The fee covers the processing and administrative costs for a buyer to assume an existing loan. The charge can be a fixed amount; normally $500, or perhaps a percentage of the outstanding balance, for example, one percent. The assumption fee is paid to the lender at the time of settlement or closing.
Administrative Fee
Administrative Fee is a fee charged by the lender to cover the administrative costs of processing the loan. This fee is generally considered as a lender fee.
Release Fee
Release Fee is a fee charged to release a lien to free real estate from a mortgage.
Taxes and Other Unavoidable Fee
These fees include the State/Local Taxes and Recording Fees and have to be paid regardless of the lender you choose and regardless of that the lender asks you to pay or not.
The home loan often involves many fees, such as loan commitments or fees, mediation fees and settlement of transaction costs and closing. Each lender or agent must be able to provide an estimate of its costs. Many of these prices are negotiable. Some are paid when applying for loans (as the application fee and assessment), and others are paid at closing. In some cases, you can borrow money to pay these expenses, but this will increase the amount of loans and total costs.
A mortgage is essentially composed of two elements - a payment of principal and interest. The principal is the total amount of money borrowed from your lender if the lender is a bank, savings loan, credit or market institution.The another is not the frenzy over the past two years, and brokers offered important business transactions nowadays.
aenny, can you rephrase that for us so that it might make a little bit of sense? What are you driving at?
The length of mortgage loan which finances your monetary needs can be minimum 15 years; can be 20, or at maximum 30 years. While selecting a fixed or adjustable interest rate, you should be aware of the facts
Some of the taxes and the mortgage is a time cost that customers pay in cash at closing. Payments may be entitled to claim expenses, loan repayments, the cost of home inspection and evaluation, ownership costs, research costs and payments to mortgage brokers and agencies in the construction sector such as the Federal Housing Administration, Veterans Administration or Rural Housing Service.
I am newbie in the real estate business and this all are necessary information which one realtor should know. So thank a lot for sharing such a useful and unknown information to me.
Information you provided here is really very informative and very useful for those people who are unknown from mortgage and its basics.
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