What type of closing costs are associated with second mortgages?
For second mortgages which are not available at no cost, the following fees may apply. The title and escrow fees are dramatically reduced from that of first mortgages. For many second loans up to $200,000, most lenders will permit what is referred to as a “flag” title insurance policy which has an associated flat fee of $125. A “sub-escrow” or “mini-escrow” fee is also charged and ranges between $225-$250. Also charged are standard notary, recording and payoff fees ranging from $60-$150. Additionally lenders charge their own loan administrative fees which generally cost about $250. If a fee appraisal is required, that could cost between $300-$400 for a standard owner occupied single family tract home. Credit fees charged will run between $25-65.
