Understanding Your Loan Estimate: Page 2, Loan Costs

Posted on October 5, 2016 by firsttitleandabstract

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.

Understanding Your Loan Estimate: Loan Costs

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!

We believe in “Putting You FIRST!”

Understanding Loan Fees

Posted on September 23, 2016 by firsttitleandabstract

Understanding loan fees is an important part of the mortgage process.

In addition to the cost of an appraisal and credit report, which have been covered in other videos, this video help you understand the various other costs of obtaining a mortgage, including:

— points

— loan origination fees

— pre-paid items

— escrow items

As you’ll see in the video, when you turn in your application you’ll be required to pay a loan application fee to cover the costs of underwriting the loan. Sometimes this fee pays for the home appraisal and credit report, or may be in addition to those charges.

You will receive a copy of your credit report and appraisal prior to or at closing.

The application fee is generally non-refundable.

Points and loan origination fees are up-front interest you pay on the loan. Often, this is where mortgage lenders make their initial profit on the work they do for you.

Sometimes you can “buy-down” an interest rate by paying more in points and origination fees. In effect, you’re giving the lender their profit early, so they have less risk, and will capture expected revenues earlier than they might otherwise.

This allows them to charge less in interest.

Understanding Loan Fees Isn’t Hard … We Can Help!

The most qualified individual to advise you on your loan costs is your loan officer. They are required to do so with a loan estimate within three days of your applying for a loan.

However, as the oldest and most established title company in Naples and Marco Island, we have represented tens of thousands of borrowers on mortgage financed purchases. Our attorneys and title professionals are able to review your loan terms and costs to provide you with added assurances that you are choosing the best mortgage for your needs, and fully understand the features of the loan.

For nearly 40 years, First Title & Abstract, Inc. has been the FIRST choice for thousands of borrowers when selecting a title company in Naples and Marco Island. We are TRID, CFPB, and ALTA compliant, and knowledgeable about hundreds of loan products.

We would be pleased to assist you in closing on your refinance, or mortgage financed purchase.

Please call upon us anytime.

Comparing Mortgages

Posted on September 15, 2016 by firsttitleandabstract

Comparing mortgages is an important step in determining which financing is best for your property purchase.

This video gives you valuable tips on how to evaluate different mortgage choices to make the best decision for you.

You wouldn’t buy a car without comparing models, would you?

So, be a savvy consumer and go mortgage shopping armed with the information you need!

Comparing Mortgages is a Good Idea

First, devise a checklist for the information from each lending institution. You should include:

the company’s name and basic information
the type of mortgage (fixed, variable, 15 year, 30 year, adjustable after 7 years, convention, VA, FHA, etc.)
minimum down payment required
interest rate and points
closing costs
loan processing time
whether prepayment is allowed

Speak with companies by phone or in person.

Be sure to call every lender on the list the same day as interest rates can fluctuate daily.

In addition to doing your own research, your real estate agent may have access to a database of lender and mortgage options or suggest a variety of different lender options.

At First Title & Abstract, Inc., our staff can refer you to competent and friendly loan officers who will provide guidance to you on available mortgage products. Comparing mortgages is easy when you are working with professionals who are experienced and knowledgeable.

We hope you will not hesitate to call us for a referral, or to help answer any questions you may have about your mortgage features.

We offer this mortgage shopping worksheet for your convenience as a good starting point.

Mortgage Shopping Worksheet