What costs are involved in getting a mortgage?
Here’s what you’ll have to pay when you close on a mortgage loan: Down Payment: Money that’s due up front on the home purchase. It will decrease the amount of money you need to borrow. You can put down as little as 3%, although many people put down between 10% and 20%. For example, if you buy a home for $100,000 and have $10,000 for the down payment, you’re putting 10% down and will have to finance $90,000 with a mortgage. Private Mortgage Insurance (PMI): ): This is insurance provided by a private company that protects lenders like Third Federal against loss in case a borrower defaults on the mortgage loan. At Third Federal, you do not have to pay PMI if you have a down payment of 15% or more. Closing Costs: These include fixed costs (application fee, loan origination fee, document preparation fee and escrow fee) and variable costs (fees for appraisal, credit report, flood zone determination, doc. stamps, intangible tax, Florida 9 Endorsement, pest inspection, recording fees, survey a
Here’s what you’ll have to pay when you close on a mortgage loan: Down Payment: Money that is due up front on the home purchase. It will decrease the amount of money you need to borrow. You can put down as little as 0%, although many people put down between 10% and 20%. For example, if you buy a home for $100,000 and have $10,000 for the down payment, you’re putting 10% down and will have to finance $90,000 with a mortgage. Private Mortgage Insurance (PMI): This is insurance provided by a private company that protects lenders against loss in the case a borrower defaults on the mortgage loan. Most banks require that you put 20% down to waive PMI. Closing Costs: These include fixed costs (application fee, loan origination fee, document preparation fee and escrow fee) and variable costs (fees for appraisal, credit report, flood zone determination, doc. stamps, intangible tax, Florida 9 Endorsement, pest inspection, recording fees, survey and final review). Closing costs vary by lender. Pr
