Mortgage Industry Secrets

"ZERO COST LOANS"

These days almost any lender you talk to will have an option for a "zero cost loan".

However, there are a number of consumers that apply for these loans and show up at closings to find a whole list of costs. They find that only the lenders fees were removed (these lender fees usually only make up about 25% of the total fees). When applying for a "no cost loan" you want to make sure to get a "good faith estimate of costs". This estimate requires a lender to dislose any anticipated fees. Here is a list of the fees that you want to make sure to look for and see whether or not you are being charged:

Appraisal Fee: $250.00 - $450.00 Credit Report: $ 50.00

LENDERS FEES:

Underwriting: $150.00 - $350.00
Tax Service: $ 50.00 - $125.00
Flood Certification: $ 25.00 - $ 75.00
Document Preparation: $100.00 - $250.00
Origination Fee: $ will vary ?
Broker Fee $ will vary ?

TITLE FEES:

Title Insurance: $300.00 - $1,000.00
Closing Fee: $100.00 - $300.00
Escrow Fee: $100.00 - $600.00
Recording Fees: $ 75.00 - $200.00
Endorsements: $ 25.00 - $200.00

*AND ALWAYS REMEMBER: Even when a lender is paying for all of the above fees and you are getting a true "no cost loan" you most likely are getting a higher interest rate than if you would have paid the costs. Make sure to research and explore all options.