Mortgage costs questions

What will a loan cost?
Your monthly payments go partly to repay your loan and partly to pay the fees for your loan, many of them relating to the closing or settlement.

Most lenders require an up-front application fee to cover their expenses as they approve you. But, Faith Financial Group doesn't. That's right - with us, it's free to apply!

Additionally, lenders charge a loan origination fee. It's generally expressed as a single point (a point is defined as 1 percent of your loan amount). For example, if you were borrowing $100,000, your loan origination point would be $1,000 ($100,000 X 1%).

The typical fees that cover the loan processing and closing are:

Lender Fees
Origination fee
Appraisal fee
Credit report
Inspection fee (newly constructed homes only)
Underwriting fee
Document preparation/review fee
Tax service fee
Mortgage insurance
Title charges
Attorney's fees
Title insurance
Transfer tax (excludes refinances)
Recording tax
Miscellaneous charges
Property survey
Termite inspection
Prepaid expenses (not part of the actual cost of the loan, but included with payment)
Prepaid interest (interest that accrues between closing and the end of the closing month - paid in advance)
Homeowner's insurance
Real estate taxes

What are the costs that are included in my loan payment?
At the least, your loan payment will consist of the principal and interest for one month. In some states, you may elect to have your insurance and taxes prorated and added onto the monthly cost. In other states, it may be required that you pay for insurance taxes as part of your monthly loan payment. This money would be placed in an impound or escrow account by the lender

What are the appraisal costs?
For all first mortgages, Faith Financial Group pays the appraisal cost and doesn't charge you until your loan closes. ditech.com will hire the appraiser. Most lenders pass this cost on to you immediately. The appraisal determines the value of the property in question, which becomes a prime factor in determining the loan-to-value (LTV) ratio (the amount of your loan divided by the value of your property). Your LTV is important because it determines your equity in the property.

What mortgage closing costs will I pay?
Faith Financial Group offers loans with and without closing costs, depending upon what type of loan you want and the amount of money you are borrowing.