Everything You Need To Know About Mortgages

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Mortgage Processing Fees

December 15th, 2005 by admin


How are these mortgage fees calculated?

The Mortgage Origination Fee
The Mortgage Appraisal Fee
The Mortgage Processing Fee
The Credit Report
The Mortgage Underwriting Fee
Mortgage Fee Summary
Mortgage Points

Most of the fees are determined by the lender. I don’t know what a mortgage fee summary is, unless it just means it the total of all the fees. The origination fee, the processing fee and the underwriting fee are all paying the lender to do his job. The fee for the appraisal goes to the appraiser and with a big company like mine, it’s a negotiated amount. Smaller companies who don’t do bazillions of loans every year may pay a different fee for every loan. The credit report is a negotiated fee between the lender and the bureaus. There are also fees for the title company and the flood certificate.

Points, however are a different story. Points are pre-paid interest used to lower the interest rate. Each point is 1% of the loan amount.

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