Closing Costs When Buying or Refinancing a Home
Non-Recurring Closing Costs Associated with the Lender:
- Loan Origination Fee
- Loan Discount
- Appraisal Fee
- Credit Report
- Lender’s Inspection Fee
- Mortgage Broker Fee
- Tax Service Fee
- Flood Certification Fee
- Flood Monitoring
Other Lender Fees:
- Document Preparation
- Underwriting Fee
- Administration Fee
- Appraisal Review Fee
- Warehousing Fee (rarely charged)
Items Required to be Paid in Advance:
- Pre-paid Interest
- Homeowner’s Insurance
- VA Funding Fee (for VA loans)
- Up Front Mortgage Insurance Premium (for FHA loans)
- Mortgage Insurance
Reserves Deposited with Lender:
- Homeowners Insurance Impounds
- Property Tax Impounds
- Mortgage Insurance Impounds
Non-Recurring Closing Costs not associated with the Lender:
- Closing/Escrow/Settlement Fee
- Title Insurance
- Notary Fees
- Recording Fees
- Pest Inspection
- Home Inspection
- Home Warranty
Refinancing Associated Costs (but not charged by the new Lender):
- Interest
- Reconveyance Fee
- Demand Fee
- Sub-Escrow fee
- Loan Tie-in Fee
- Homeowner’s Association Transfer Fee
Asking the Seller to Pay Closing Costs:
- Rules and advice for asking the seller to pay closing costs, including limitations on conventional, VA, and FHA loans.
Understanding these various closing costs can help you navigate the home buying or refinancing process more effectively and make informed decisions about your financial obligations.