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Loan Origination Fee – The fee charged to you
for originating your loan. Typically this fee is 1% of the loan amount and
may be combined with the discount points charged. |
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Discount Points – This is a one-time fee
charged on loans that have an interest rate lower than the "market rate."
As the interest rate charged decreases, the discount points increase. |
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Appraisal Fee – A fee charged by an appraiser
that can range from $200 to $600, depending on the type of property
involved. You pay the appraisal fee either at the time of the appointment
or at closing. |
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Tax Service Fee – This fee covers the cost to
research the tax-payment history of your property. |
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Flood Certification – A fee for certification
from the Federal Emergency Management Agency (FEMA) that your property is
not in a flood zone. This is required for all properties. |
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Prepaid Interest – Interest must be charged
from the day your loan is funded to the first day of the next month. On
your Good Faith Estimate, we assume 15 days of interest, although the
final amount depends on the day you close your loan. |
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Wire Transfer fee – A fee charged for wiring
your funds (may come through the Title Company). |
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Private Mortgage Insurance (PMI) – On loans
over 80% Loan-to-Value (LTV) and on certain types of loans, Private
Mortgage Insurance may be required. Designed to protect the lender should
you default on your loan, you pay this insurance monthly. |
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Reserves/Escrow – At closing, many lenders
collect several months estimated taxes, hazard insurance, and PMI (if
applicable). |
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Settlement Fees – These fees are charged by the
Title Company for handling all the paperwork and financial transactions
associated with your closing. |
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Title Insurance – Title insurance guarantees
your home has no outstanding liens against it. |
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Additional Charges – These fees are for
recording your deed of trust, assignments, grant deeds, or any other
documents that need to be recorded. And if a survey, quit claim deed, or
subordination agreement is required, there may be additional charges.
City/county taxes may also be charged, if applicable. |
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| Courier Fees – These fees cover the costs of overnight mail charges and courier fees for your documents |
Contact us at 970-204-4509 or email us at loans@pinnaclema.com