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What are the costs typically associated with a Residential Loan?
Information for Sellers
Broker/Loan Agent: The Broker/Loan Agent's compensation is usually based upon a percentage of the loan amount. The broker's compensation is paid through a combination of the following: a) paid by the borrower to the broker in the form of origination points and/or; b) paid by the lender to the broker in the form of yield spread premium or rebate.
Appraiser: The typical appraiser charges between $350 and $500 for an appraisal of a property valued under $1 million. Properties valued over $1 million are usually between $800 to $1000.
Lender: Lender fees typically total approximately $999 for a 1st mortgage and an additional $250 for a 2nd mortgage.
Escrow: Escrow fees generally include a base fee ranging from $500 to $1200 depending upon the escrow company. Additional fees are sometimes charged including Loan Tie-In, messenger service, notary, doc prep. These additional items can total an additional $200 to $500.
Title: Title fees are based upon a percentage of the loan amount and will vary from one company to another. Additional fees will often include recording, sub-escrow, wire. These additional items can add an additional $200.
Insurance: For a refinance, borrowers will typically need to have at least six months remaining on their homeowner's insurance policy and a full year's premium paid in advance for a new purchase.
Property Taxes: At the close of every transaction, property taxes will be paid current. Additionally, if the transaction is closing within a month of when the next installment comes due, the next installment will typically be required by the lender to be paid in full as well.
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