This section groups items that detail the amounts due and to whom they are due

Filled in only for purchases

If non-real property is involved in the transaction. A manufactured home is considered personal property

The amount paid to satisfy an existing loan. This line is used for refinances only.

Taxes being paid

This section lists the money being brought to the table (or already held in escrow) by the borrower/buyer

This is the amount already paid by the borrower/buyer

This is the borrowed amount

These totals summarize sections 100 & 200

This section sums up the transaction similar to section 100, only from the seller's perspective

With a purchase, if the seller had an existing mortgage loans, they would be listed here

These totals summarize sections 400 & 500

These amounts split the real estate commissions paid by the buyer and/or seller

This section describes all one-time fees that are part of the process of approving and make the loan at the interest rate you have requested.

The fee charged to the borrower by the lender for making a mortgage loan.  It is usually computed as a percentage of the loan amount.

Points charged by the lender to offer the interest rate you are receiving.  Each point is equal to 1% of the mortgage amount. This is tax deductible (entire amount in first year on purchase, spread over life of loan on refinance).

Payment to an independent and licensed appraiser to research and assess the market value of the property.  The appraisal is required in order to determine the security of the loan and the borrower's Loan to Value (LTV) ratio.  Appraisals cost $250-$450 depending upon your local market.  Investment property appraisals cost an extra $100-$200 due to the extra forms required on investment appraisals.

This fee is charged by a credit service agency to provide the lender and us with a report detailing a borrower's credit history.  We require an independent credit report, so we cannot reuse any prior credit reports you may have.

The lender requires research by the title company of the Registry of Deeds records for the county in which the property lies.  Each property is reviewed to confirm that the taxes are paid in full and up to date.  Any unpaid (or soon-to-be-due) property taxes are a liability to the lender and must be paid at closing.

This is what we, or any other mortgage company, is charged for the review of your application by the lender's underwriter. Only in rare cases are underwriting reviews necessary.

This amount is paid by lenders to our company, or any mortgage company, for closing your loan.  This amount is not paid by you, nor does it increase your closing costs.

This is our fee to you. It is a tax deductible amount, either 100% during first year of a purchase, or spread over life of loan for a refinance. See Mortgage Tax Deductions for more information.

The mortgage company's fee for handling your paperwork.

If you choose to pay your taxes and insurance separately from your regular monthly mortgage payment you may pay this one time fee to the lender.  The fee is usually .25% of the loan amount.

This section lists that a borrower may be required to prepay at the time of settlement, such as accrued interest, mortgage and hazard insurance premiums.

Prepaid interest due on the new loan from the date of funding to the end of the month.  Every mortgage lender clears any interest due at time of closing for the current month.  Most mortgage companies use a 15 day estimate.  If you close early in the month you will owe more interest, if you close later you will owe less. Please keep in mind that you will have one month without a mortgage payment after closing.  So if you close Jan 15, your first regular payment will not be until March 1st.

Private Mortgage Insurance (PMI) may be required on certain loans (usually above 80% Loan to Value).  It is paid by the borrower and insures the lender against certain losses in the event of a foreclosure.

The lender will require you to insure the property you are buying, since the property is the collateral for the loan.  At the time of closing you must pay the entire first year's premium.  If you already have hazard insurance, contact your insurance company and ask them for a copy of your insurance policy to show the lender.  We are estimating the amount of the coverage, and every borrower is free to choose their insurance provider.  We will replace this figure with your actual amount once we know what the exact amount will be.

If your property is in a flood zone Flood insurance may be required.  It is paid by the borrower and insures the borrower and lender against certain losses in the event of a flood.

Reserves held by the lender in an escrow account to pay for the borrower's future insurance premiums and taxes are detailed in this section. 

Impounds may be required on loans with Loan to Value (LTV) ratios over 80%.

See PMI Explained for an explanation of this charge.

Estimated amount necessary to set up your escrow account. Your property taxes are being estimated at this point, and may be high or low in this assumption.  Your title company will provide us with the final (and accurate) amount due prior to closing.

Impounds may be required on loans with Loan to Value (LTV) ratios over 80%.

In this section the costs of a variety of services performed by the title company and others are specified. 

The fee paid to the escrow company for handling all the financial transfers and payments associated with the transaction.  GFE provider will estimate the fee, but is set by the closing firm you select.

Pays for the service of creating your loan documents.

Several documents you sign during the loan must be notarized.

Some states require an attorney handle the closing.  If you live in one of those states this is our estimated fee for their services.  The mortgage company does not set this fee, and you are free to negotiate this with the attorney you select to handle your closing.

Guarantees that your home has no other liens on the property and guarantees your undisputed ownership.  All lenders require that you have title insurance on the home.

Most closing firms will require the title history on your loan to be reviewed before they can issue a new title policy.  Some firms include this in their general fees (line 1101).

In this section, details about charges for the fees paid by either the buyer or seller at the time the purchase agreement is executed are found.

To create a public record of your legal ownership of the property, the lenders notify the county government to record the transaction.  The recording fee, which varies by state, is paid to the county.

Stamps, affixed to the deed, showing the amount of transfer tax paid.  Most states stamp the deed rather then actually affixing a stamp. Many localities collect a transfer tax whenever a property changes hands.

Stamps, affixed to the deed, showing the amount of transfer tax paid.  Some states collect a mortgage tax anytime a new mortgage is recorded.

The final section describe other miscellaneous fees and credits.

Some states require a survey before the loan can be fully approved and cleared for closing. The actual cost is set by the title firm and has been listed here.

Cost of the flood zone determination to confirm if the property is /is not in a flood zone.

The cost of the wire transfer to deliver funds to the closing.