Real estate news for home buyers
“Iwas aware of the down payment. At the closing, my eyes went wide, and I had to step out to catch my breath because I hadn’t been aware of the fees.”
Here’s a primer on what they are and whether it’s possible to get them waived. Know what you’re paying for when you buy your house!
Loan origination fees
The loan origination fees are often the largest set of fees you’ll pay on your loan. The total amount of originations fee will vary depending on your lender or broker, but they can range anywhere between 0% and 3% of the loan amount (3% is generally the cap for all “origination” fees on the average mortgage loan).
As a category, any fee charged by and paid to the lender and/or mortgage broker for making or “originating” your loan are considered “origination fees.” While the amounts of all of these fees may be itemized and can vary, the total of them, in aggregate, cannot exceed 3% of the loan amount on most loans.
Some lenders will charge separate, itemized fees, such as funding fees, underwriting fees, and processing fees. Most of these fees will be paid at the time your loan closes, but there are also certain specific origination fees that you may see earlier in the loan process, such as …
With some lenders, you can expect to pay an application fee up to $500 when applying for a mortgage. This fee isn’t refundable because it covers tasks that the lender must complete, whether or not they approve you for a loan.
These administrative expenses could include paying someone to process your paperwork or to research and confirm your answers to questions on the application. But not all lenders charge an application fee, so it’s worth it to shop around.
Rate lock fee
After they have approved your loan, some lenders may require you to pay a rate lock fee. This fee locks in your interest rate for a specified time, which protects you from interest rate increases while you’re home shopping.
It’s a good idea to ask about a rate lock if you expect your home search to take longer than 60 days, or if experts predict that the Federal Reserve might raise rates soon. Some lenders may not charge you a rate lock fee upfront, but then could charge a rate lock fee if you’re unable to find a home and close your loan during the initial lock period and will need an extension to keep your locked rate.
Mortgage broker fee
Mortgage brokers work as a middleperson on your behalf to find you a loan that suits your needs from their network of lenders. They help pull together documents and other information that lenders require to apply for a mortgage, then do the work of shopping around to find loan programs that work for you.
If you choose to use a mortgage broker, the broker will receive a mortgage broker fee. Either you or the lender will pay the mortgage broker, but never both.
The term “points” might be used to describe two different kinds of fees: either “origination points” or discount points.
A “point” is simply a way to describe 1% of the mortgage’s total amount. You may find a lender’s origination fee expressed as “origination points,” or a fee that is usually between 1% and 2% of the loan amount (in other words, one to two points). These origination points would also be included in the 3% fee cap on origination fees that applies to most mortgage loans.
“Discount points,” on the other hand, are prepaid interest; paying them upfront reduces your loan’s interest rate, thus lowering your monthly payment. Most lenders that offer discount points will allow you to pay 1% for one point, which will reduce your mortgage interest rate by around 0.25%.
These discount points, so long as they are paid to actually reduce your rate, are generally not considered an “origination fee” and therefore are excluded from the 3% fee total.
The origination fees charged on your loan can vary widely from lender to lender. Some lenders may charge more in itemized origination fees, but then perhaps will offer lower rates. Other lenders may have slightly higher rates, but then charge lower lender fees. You may find a lender that has slightly higher origination charges, but competitive rates, and the slightly higher fee is justified because the service they provide is excellent. And you may find that using a mortgage broker works best for you so they can shop around on your behalf.
Because the fees and rates that a lender or mortgage broker can charge can vary so widely, it is always a great idea to shop around for the best rate and fee structure that works for you. Never be afraid to ask the licensed loan originator you are working with to explain their fees and rates, and your lender should provide you with a Loan Estimate when requested, so you have a standardized form you can use to compare lenders.
Other fees paid to your lender
There are other fees you’ll have to pay your lender that aren’t directly involved with originating the loan.
If your house closes on the 18th, but your first payment isn’t due until the 30th, interest will still accrue on your loan during that period. You will need to prepay for accrued loan interest at closing.
Government program fees
If you opt for a government-backed loan program, like an FHA or VA loan, you will likely have to pay certain fees connected with these loans at close. For example, FHA loans require an upfront mortgage insurance payment, currently 1.75% of the loan amount. And VA loans include a separate VA funding fee that can vary based on your circumstances.
Upfront private mortgage insurance
Some lenders charge private mortgage insurance, or PMI, upfront. That means you may have to pay all or part of your PMI premium at closing.
This premium purchases the loan’s mortgage insurance for the loan’s lifetime, rather than amortizing it and including it with your monthly mortgage payments.
If you’re taking over a seller’s assumable mortgage, you will have to pay a fee. (It would only be worthwhile to take over an assumable mortgage if it has a lower interest rate than current market rates, in which case the fee would likely be worth the long-term savings.)
Mortgage lenders and mortgage brokers aren’t the only entities involved in issuing a mortgage. There are other players in the game who will also need to be paid for their participation.
In some states, you’ll hire an attorney to look over your closing paperwork or other loan documents. Attorneys typically charge by the hour, which can make this expense hard to predict.
In Massachusetts, buyers pick their attorney, which senior loan officer Philip Ganz, who has 19 years of experience in the Boston area, says leads to wild swings in cost.
Mortgages are secured loans, meaning that there is an asset backing the loan. Your house is the asset that secures your mortgage, and it must have enough value to pay off the loan if the bank had to foreclose. The bank will hire an appraiser during the mortgage approval process to estimate the value of your potential new home, and they pass the appraiser’s fee onto you, the buyer.
Before closing, a title company must perform a title search. This search investigates any possible outstanding claims against the title, which could cause major issues down the road. If someone else had a claim to the home you bought, it could lead to lawsuits as ownership gets hashed out in court.
The title search fee runs around $200, and in addition to it, you will have to purchase lender’s title insurance. This insurance protects the lender’s asset, the home, if someone files a claim against it.
Lender’s title insurance doesn’t protect the buyer, which is why you should also consider owner’s title insurance. An owner’s policy covers items such as mistakes in examining records, errors or omissions in deeds, undisclosed heirs, or forgery related to your home’s title.
Whether it’s a title agent, escrow company, or other settlement agent who is conducting your closing, they will likely charge you fees for settlement, escrow services, closing, and so on. Be prepared to also see notary fees, document prep fees, and other fees connected with the signing of your documents and final closing of your loan.
Transfer taxes, government fees, and recording fees
You will also likely see fees for recording, transfer taxes, or other local government fees attached to the closing of your home.
What fees can you negotiate?
After learning about mortgage fees, many homebuyers’ next question is: How many of these are negotiable? Some fees will not be negotiable, but you can always ask if the lender is willing to waive an application fee or if the mortgage broker will accept a lower commission.
In some markets, you may be able to ask the seller to pay closing costs. Le Baron has seen this work when the buyer increases the offer price by $6,000 in exchange for the seller paying $6,000 of their closing costs.
He warns that the caveat to this approach is that “you may run into appraisal concerns because you’re essentially rolling those costs into the loan.” When you increase the total purchase price, the home still has to pass the appraisal.
Commonly negotiable fees include:
- Application fees
- Loan origination/underwriting fees
- Mortgage rate lock fees
- Mortgage broker’s commission
And even if the lender’s fees are fixed and they aren’t willing to negotiate, remember, you always have the right to shop around and compare fees. Ask each lender to provide you with a Loan Estimate of fees based on your scenario and compare them.
Should you really worry about mortgage fees?
In the long run, mortgage fees are a drop in the bucket when compared to a home’s total cost. If you’re hung up on paying these fees, however, Le Baron advises that you take a step back.
Borrowing money “to purchase a house is not free,” he says. “When purchasing a hard asset like a home, you’re not paying rent any longer, and you’re planning to live there an extended amount of time. You will make up those fees.”
Just make sure that you include them in your homebuying budget!
Header Image Source: (Colton Sturgeon / Unsplash)
1318 Virginia Circle Nampa, ID 83687
4 Bedrooms, 3 Bathrooms & 3833 SQFT (.76 acres)
Minutes to the Freeway!
Welcome to the coveted Virginia Hills Community—one of Nampa’s most prestigious communities featuring breathtaking views & situated just minutes to the freeway! Have you been looking for country club homes for sale? Well, look no further! This well-laid out interior floor plan presenting a grand entry, spacious bedrooms, vaulted ceilings, 2 gas fireplaces, recessed lighting & abundance of living space. The chef’s kitchen features dual ovens, a middle island with gas range, granite countertops courtesy of resurfacing cabinets CA, breakfast bar, pantry & pendant lighting while the over-sized master retreat holds a charming sitting area, vaulted ceilings, double vanities, an enormous walk-in closet with built-in ironing board and a step-out deck offering views of the Boise Front. The day-light basement contains brand new carpet, paint & fixtures! Exterior features include nearly 1000 sqft of outdoor entertainment space, mature landscaping, RV parking with dual access gates & a 1220 sqft garage! New HVAC (with high quality dehumidifier) & H2O heater in 2014. Too many amenities to list!
Priced at only $467,000 or just $121 per square foot!
Please visit https://idx.diversesolutions.com/search/3656/2#PropertyID=1043768688 to view detailed information and additional photos of this home or click the following link to view the photo tour: https://tours.tourfactory.com/tours/tour.asp?t=1968682
For some extra payment options consider selling an unwanted property. No hussle, no repairs, no real estate agents. We buy homes Chicago are professional cash home buyers who make fair offer and ready to buy at once.
707 10th Ave South Nampa, ID 83651
4 Bedrooms, 2 Bathrooms & 2368 SQFT
Impeccable head to toe remodel while preserving the charm & character of the era! Updated plumbing, electrical, brand-new replacement windows, floor coverings & paint, and of course a brand-new and top of the line air conditioning installation. Winter is rolling around so we made sure it wasn’t in need of any heating repair or a heating system installation. It’s been confirmed to be in perfect running condition, and should withstand for many years to come. Original wood flooring, timeless finish work, tile, built-in storage, upstairs loft/office and a cast iron claw foot tub within the main level bath. Since the house has decentralized air conditioning, you might need to Check this out for Air Duct Cleaning in Austin every three months or so. The kitchen features marble countertops, rolling island, drop down lighting, an apron sink and only the best stainless steel appliances from unclutterer.
Low maintenance exterior grounds containing a 30×24 detached shop w/unfinished upstairs bonus room, 220 power & plumbed by Whitton Plumbing services for a bathroom along with a storage container with welding station, large back patio, raised garden beds, mature landscaping with ornamentals, room for RV parking & fire pit. Too many amenities to list! Call today for additional information or to schedule your own private viewing. Please see additional photos w/in the photo tour.
Priced at only $212,500!
An approximate monthly payment at the asking price of $212,500 while placing 3.75% down (3.5% interest rate—taxes and insurance included) would be at or around $1,080 per month.
Please visit https://trustidaho.com/property-search/#PropertyID=1030990118 to view detailed information and additional photos of this home or click the following link to view the photo tour: http://www.tourfactory.com/1813474
roof4228 S Raintree Nampa, ID 83686
2 Bedrooms, 2 Bathrooms, Office/Den & 1805 SQFT
Thanks to our partners that are fully equipped to provide a Structural Steel Erector with the help of an industrial provider that has equipment like an air cannon, we have for you this BRAND NEW & situated on a private corner lot in one of Nampa’s most desirable communities and within eyesight of Lake Ridge Elementary! This one is built to last and withstand. The luxurious interior holds a great room designed floor plan (perfect for entertaining) featuring deluxe engineered flooring throughout along with vaulted ceilings/9′ ceilings, pre-finished flooring, Sun Valley texture with designer paint colors (all the painting done by professional residential painter), a large office/den, soaking sink within the laundry room & transom windows which bring in an abundance of natural light. This house was made with a scaffolding construction. The design of the house is inspired by the beautiful home designs by 101 residential as their homes are designed in a way that they match every single requirement which a buyer could think of. The chef’s kitchen presents high-end stainless steel appliances (with a warranty from the best home warranty companies in Florida), a large pantry plus an abundance of cabinetry & a middle island/breakfast bar while the spacious master retreat contains dual vanities, tile flooring, a tiled walk-in shower, recessed lighting & a substantial walk-in closet. as the only 100% Australian-made machine designed for various applications featuring an additional fourth axis for automatic tool changes including special tools such as Flat washers, Chucks, Angle heads and Collets.
Fully fenced exterior grounds thanks to the custom home construction company (full landscaping package) offering an E facing covered back Trex deck, auto sprinklers, and rock beds. We hired an overhead crane service to work on the 50-year architectural roof. That means you will have the peace of mind that it was recently renovated by a top notch roofing contractor recently. A Gutter Screen System (characteristics, materials, technology used to be found at Transition Roofing) and a finished extra deep over-sized garage (27′ deep).
Priced at only $224,500—an excellent buy for new construction! Ask your financial advisor– they will tell you it’s a steal. After all, it has an approximate monthly payment at the asking price of $244,000 while placing 3.5% down (3.5% interest rate—taxes and insurance included) would be at or around $1,340 per month.
Please visit https://trustidaho.com/property-search/#PropertyID=175702835 to view detailed information and additional photos of this home or click the following link to view the photo tour: http://tours.tourfactory.com/tours/tour.asp?t=1688523
4902 Castleton Avenue Nampa, ID 83686
3 Bedrooms, 3 Bathrooms & 2446 SQFT
Oversized Lot with 5+ Car Garage!!
No back yard neighbors and a huge 5+ car garage are just a couple of features in this custom home. We contacted a highly professional garage door replacement service that was up to the task, and installed some state-of-the-art garage doors for this awesome garage. If elbow room is what you are after you will find it in this country setting.
Enjoy the East facing patio partially covered and a built in firepit. Inside you will see many beautiful features including the stone entertainment center. Master bedroom /bath features large walk-in closet with laundry room. Upstairs features bonus room, full bath and bedroom with its own laundry room/walk in closet. Set up for dual zone HVAC if new owner wishes to install. Home has many custom features such as very large pantry, upper and lower laundry rooms and much more.
Priced at only $334,500!!
An approximate monthly payment at the asking price of $244,000 while placing 3.5% down (3.5% interest rate—taxes and insurance included) would be at or around $1,340 per month.
Please visit https://trustidaho.com/property-search/#PropertyID=174326029 to view detailed information and additional photos of this home or click the following link to view the photo tour: http://tours.tourfactory.com/tours/tour.asp?t=1591054
3124 Ginger Lane Nampa, ID 83686
4 Bedrooms, 3 Bathrooms & 2992 SQFT
One Word . . . Amazing!
Relax & take in the stunning lake views upon entering this quiet country community featuring pride of ownership & upscale estates! Well-appointed & built with quality in mind by Kinzler Builders. I must say that the ac repair houston tx experts are the best as they made sure that the heat did not bother us inside the house. Private cul-de-sac location, stunning views with no back neighbors & shop ready! Interior amenities include an inviting entry, hardwood & tile throughout, luxurious finish work, granite, an abundance of built-in storage, recessed lighting, central vacuum & a large upstairs bonus room with bed & bath—perfect for guests. The spacious kitchen holds durable Corian counter tops, stainless steel appliances from the local business Dewaard & Bode, breakfast bar, HVAC (with a repair service), a large pantry, tile back splash & wainscoting while the main level master retreat contains recessed lighting, granite, dual vanities & a large walk-in closet.
Fully fenced exterior grounds featuring mature landscaping, an E facing covered back patio, on of the most amazing and welcoming decks you have ever seen! As for the front, a cozy front porch, concrete curbing & a finished/over-sized garage –too many amenities to list! See additional photos within the photo tour.
Priced at only $364,000!
Please visit https://trustidaho.com/property-search/#PropertyID=169073052 to view detailed information and additional photos of this home or click the following link to view the photo tour: http://tours.tourfactory.com/tours/tour.asp?t=1622106
1962 W Deep Creek Nampa, ID 83686
4 Bedrooms, 2.5 Bathrooms & 2449 SQFT
Move-in ready & situated within a private cul-de-sac location with no immediate back neighbors. Interior features include pre-finished hardwood, tile & granite along with 9′ ceilings, a 2-story entry, large upstairs bonus room, recessed lighting, oversized bedrooms & transom windows bringing in an abundance of natural light. The spacious kitchen holds stainless steel appliances, a corner pantry & breakfast bar while the main level master retreat contains dual vanities, tub plus shower & a large walk-in closet.
The partially fenced exterior grounds hold a covered back patio with gas stub, a big pool, mature landscaping & a cozy front porch. Plumbed for central vac, ceiling fans, neutral paint colors, an abundance of storage–too many amenities to list! Here you can view info and additional photos within the photo tour.
Priced at only $244,000—just $99 per square foot!
An approximate monthly payment at the asking price of $244,000 while placing 3.5% down (3.5% interest rate—taxes and insurance included) would be at or around $1,340 per month-why rent?!?
Please visit https://trustidaho.com/property-search/#PropertyID=163155016 to view detailed information and additional photos of this home or click the following link to view the photo tour: http://tours.tourfactory.com/tours/tour.asp?t=1591054
2097 W Crooked Stick, Eagle
5 Bedrooms, 3 Bathrooms & 3845 SQFT
One Word . . .Stunning!
Like new & situated within one of Eagle’s finest communities located just minutes to downtown Boise. Interior features include an updated chef’s kitchen with stainless steel appliances (including double oven), granite counter tops, a middle island, pantry & breakfast bar. Additional amenities include refinished hardwood flooring, recessed lighting, a gas fireplace, central vacuum, office plus flex room & an abundance of natural light. The over-size main level master retreat holds indirect lighting, a sitting area, large walk-in closet & tile/travertine. Below grade you will find an substantial rec room with surround sound, a kitchenette & an abundance of built-in storage.
The professionally manicured & fully fenced exterior grounds (1 acre) hold mature landscaping, wrought iron fencing, a covered back patio & room for RV parking. See additional photos w/in photo tour! Priced at only $515,900!
Please visit https://trustidaho.com/property-search/#PropertyID=157008259 to view detailed information and additional photos of this home or click the following link to view the photo tour: http://tours.tourfactory.com/tours/tour.asp?t=1552842
321 Holland Drive, Nampa
3 Bedrooms, 3 Bathrooms & 2876 SQFT
Situated w/in a private cul-de-sac near Lions Park & Pool along with services of all types. Interior features include hardwood & tile throughout, a plethora of built-in storage (including a china closet), 2 fireplaces, an inviting entry, recessed lighting, 9’ ceilings, & over-sized dual master suites. The remodeled kitchen holds stainless steel appliances, a middle island, office nook & a plethora of cabinetry. Fully fenced with mature landscaping, a private back patio, storage shed, work shop w/in the over-sized garage & plenty of room for RV parking.
There is an abundance of living space which includes an over-sized living room & den (both with access to the private back patio) along with a flex room–all on 1 level. Just minutes to I-84!
Priced at only $245,000!
An approximate monthly payment at the asking price of $245,000 while placing 3.5% down (3.75% interest rate—taxes and insurance included) would be at or around $1,275 per month.
Please visit https://trustidaho.com/property-search/#PropertyID=146795155 to view detailed information and additional photos of this home or click the following link to view the photo tour: http://tours.tourfactory.com/tours/tour.asp?t=1502776
- April 2021
- February 2021
- October 2020
- January 2020
- May 2018
- July 2017
- December 2016
- October 2016
- August 2016
- July 2016
- May 2016
- February 2016
- January 2016
- October 2015
- August 2015
- July 2015
- June 2015
- May 2015
- March 2015
- February 2015
- January 2015
- December 2014
- October 2014
- September 2014
- August 2014
- July 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- March 2011
- December 2010
- November 2010
- September 2010
- August 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- November 2009
- October 2009