These closing costs and settlement charges should be deemed “general reference” items only, and not as a guarantee or prediction of actual costs.
| Items Payable in Connection with Loan | Anticipated Fees | What is the basis for this line item? |
|---|---|---|
| Loan Origination Fee | 0-3% of loan amount | Originator's compensation from Borrower for their service |
| Loan Discount Fee | 0-3% of loan amount | Compensation to Lender for offering below market interest rate |
| Appraisal Fee | $300 - $1,000 | 3rd party charge as Lender's basis for making a mortgage loan |
| Credit Report | $0 - $40 | 3rd party fee to credit reporting service |
| Mortgage Broker Fee | 0-3% of loan amount | Similar to Origination Fee. Some states prefer this term usage |
| Tax Related Service Fee | $0 - $100 | Fees Lender charges for confirming real estate tax escrow amounts |
| Processing Fee | $0 - $1,000 | Originator's loan processor's fee to expedite handling of files |
| Underwriting Fee | $350 - $1,000 | Fees Lender incurs/passes through for its loan underwriter's fee |
| Wire Transfer Fee | $0 - $50 | Lender's fee to wire mortgage loan funds to settlement agent |
| Flood Certification | $0 - $25 | Flood zone verification fees |
| Application Fee | $0 - $1,500 | Charge by Originator for taking/organizing mortgage loan application |
| Closing/Escrow/Attorney/Settlement Agent Fee | $350 - $1,500 | Title Company/Attorney's fee to distribute loan proceeds and documents |
| Document Preparation Fee | $0 - $350 | Title Company/Attorney's fee to prepare loan documents |
| Notary Fees | $0 - $250 | Title Company/Attorney's fee to notarize signatures |
| Title Insurance Premium - Owner's | $0 - $20,000 | Rates for coverage set by state regulatory codes (purchase transactions only) |
| Title Insurance Premium - Lender's | $0 - $5,000 | Rates for coverage set by state regulatory codes (purchases and refinances) |
| Government Recording & Transfer Charges | ||
| Recording Fees | $35 - $600 | Municipalities usually charge per page for recorded mortgage documents |
| Mortgage Recording Tax (aka Tax Stamps) | 0-3% of loan amount | The most costly settlement charge in NY, but may be avoided in some cases with CEMA |
| Additional Settlement Charges | ||
| Pest Inspection | $0 - $200 | Only required in some types of HUD/FHA mortgage loans |
| Title Closer | $0 - $400 | Title company representative's fee for attending closing and processing paperwork |
| Escrow Service Charge | $0 - $125 | Escrow agent's fee for handling payment of RE taxes or other encumbrances |
| Items Required By Lenders to be Paid in Advance | ||
| Interest | 0-30 per diem interest | Depending on which day of the month closing occurs, per diem interest is taken from loan proceeds |
| Hazards Insurance and/or Flood Insurance Premiums | $0 - $3,000 | Casualty insurance for subject property. One year coverage is paid in advance at or prior to closing |
| Up Front Private Mortgage Insurance | 0-2.25% of loan amount | For HUD/FHA loans, this amount can be added to loan amount and paid back over time |
| Reserves Deposited with Lender | ||
| Hazard Insurance and/or Flood Insurance Installments | 0-12 months coverage | In addition to annual premium, monthly installments of insurance are taken from loan proceeds |
| Mortgage Insurance Premium Reserves | 0-2 months coverage | Monthly installments of mortgage insurance are taken at closing for HUD/FHA loans |
| Real Property Tax and School Tax | 0-12 monthly installments | Depending when taxes are due, corresponding monthly installments are taken from loan proceeds |
| Aggregate Adjustment Credit | 0-2 months credit | For those items paid in advance through escrow, a credit is applied per banking regulatory formulas |
