Closing costs

In this article we look at the closing costs that a borrower has to commonly pay and an estimate of how much it can be. These charges & fees always vary, so borrowers should always shop around to get the best combination of closing costs & mortgage loan terms.

Most common closing costs -

1. Application fee: Around $75 - $300 which includes credit report cost for each applicant.
2. Loan origination fee: 1 to 1.5% of the mortgage amount
3. Points: 0 to 3% of the mortgage amount
4. Appraisal fee: About $300 - $700
5. Home inspection fee: Around $175 - $350
6. Prepaid interest: Depends on rate of interest, mortgage amount & number of days that are to be paid for.
7. FHA, VA & RHS fee: FHA fees is about 1.5% of mortgage amount, VA fees varies between 1.25 - 2% of mortgage amount and RHS fees are 1.75% of mortgage amount.
8. Homeowner's Insurance: Around $300 - $1000
9. Flood determination fee: About $15 - $50
10. Survey cost: Around $150 - $400