Understanding Your Loan Estimate: Page 2, Loan Costs
Your real estate mortgage costs are summarized on page 2 of the closing disclosure.
Generally, closing costs are fees paid when the title of the property is transferred to the buyer making them the legal owner.
The fees associated with obtaining a mortgage make up a portion of your closing costs, and are called “loan costs.”
They include Origination Charges— the fees collected by the lender for the loan process.
They may including fees for handling the loan application and “Origination Fees”, which are compensation paid by the creditor to the entity that originated your loan.
“Points” are fees paid to lower interest rates; points are considered prepaid interest for the buyer, and are usually tax deductible. Be sure to check with your tax advisor on the deductibility of points.
Finally, Underwriting fees are costs associated with assessing the risk that the loan might not be repaid, based on the loan specifics and your financial characteristics.
Your loan officer will be able to explain the fees which make up your loan costs.
As always, however, you can count on your friends at First Title & Abstract to review your mortgage terms and offer our assessment. We’ve seen thousands of mortgages and fully understand what are typical and atypical charges for your mortgage.
The one title company in Naples and Marco Island which has come to be trusted above all others, is First Title & Abstract.
We were the FIRST title company in Collier County, and after almost forty years, we remain the FIRST choice among Realtors and buyers and sellers of real estate in the Naples area.
For friendly, professional title services, call on First Title & Abstract!
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