There are a number of fees that make up the entire sum or your loan costs, so here’s the basic breakdown.
Closing costs are fees paid when the title of the property is transferred to the buyer, making them the legal owner.
Origination charges are 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.
Finally, underwriting is a payment to the lender for their assessing the risk that the loan might not be repaid, based on the loan specifics and your financial characteristics.
At Title Junction, we care about helping you stay informed throughout your real estate transaction. The experts at our title company have extensive knowledge about real estate not only in Cape Coral and Fort Myers, but all of Florida as well.
Have questions? Give us a call at 239.415.6574.
In case you missed it, check out our last Title Junction post: How Home Appraisals and Inspections Can Prevent Your Closing