Home » Finance » Mortgage

Essential Mortgage Fees Explained

Jun 8, 2008
All the legal language that is associated with mortgages can be so confusing when you are trying to understand it. It is very hard to distinguish one financial term from the other because there are so many of them. There are five basic types of mortgage fees and it is important to know how to identify each of these fees and how they affect your loan. You could possibly save yourself a lot of money and frustration if you understand how these fees work. Mortgage fees are an important part of the home financing industry.

A starting cost that is charged by the broker who provides the loan is called an origination fee. The usual rate for this fee is about 2%. This is a reasonable rate but if it is higher you would be wise to search further. If your personal affairs are somewhat complicated there may be an exception to this general rule of thumb. You need to make sure you are getting the best rates for your money, because a mortgage brings a serious debt responsibility.

When you apply for a home loan you must have a credit report done. The credit report is obtained by the lender and then a fee of about ten to twenty dollars is charged to the borrower. To protect yourself from unlawful of unnecessary charges, you must make sure the credit report is actually obtained by the lender.

A normal part of refinancing an old home or buying a new one is the mortgage appraisal fee. A home needs to be approved by a licensed appraiser if it is being considered for refinancing options or being put on the market to sell. The fee of the appraiser for his services is the responsibility of the borrower. Depending on the state or country in which you live and the individual appraiser, the appraisal fee may be in a range from about three hundred to five hundred dollars.

A mortgage processing fee, which is authorized by the lender, is charged by a professional loan processor or a third party provider. This fee, which can be as much as four hundred dollars, is paid by the borrower. It is important to have someone who knows what they are doing involved, because the actual loan process can be very time consuming and tedious. All of the documents that list the title, insurance, and the appraisals have to be gathered together for the borrower and also for the lender.

The administration fee or the mortgage under-writing fee is paid by the borrower to cover the costs of closing, underwriting and funding the amount of the home loan. This fee is the initial profit the lender gains for helping the borrower to obtain a loan for their home.

You must learn all you can about mortgage fees and other financing terms. In order to keep from being confused or disadvantaged by the language and practices of the mortgage lenders and brokerage agencies, you must become familiar with the legal language. Your family deserves a great home and you deserve the best deal on a mortgage you can negotiate for yourself.
About the Author
Joe Kenny writes for Rebuild.org, offering mortgages, they also have some great offers on refinance for any homeowners looking to release equity.
Visit today: Loans from Rebuild.org
Rating:
Please Rate:
(Average: Not rated)
Views: 502
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources