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FYI
What
Are Typical Closing Costs?
Here are some of the typical closing costs payable to Corridor Mortgage Group that you may encounter in the settlement of your transaction. Some items listed below may not be a part of your transaction.
Loan Origination
This is a fee charged for the work in evaluating and preparing the mortgage loan. It may either be a flat fee or a percentage of the loan amount designated by "Points." One point equals one percent (1.000%) of the loan amount. For example: one point on a $125,000 loan would be $1,250.
his fee may or may not be charged based on the type of loan or the interest rate that is selected.
Loan Discount
This is a fee charged in order to obtain a lower interest rate on the mortgage loan. This is charged on a percentage of the loan amount and also called "Points."
At any given time a particular loan product will have an interest rate that charges no points. You can obtain a lower interest rate by paying points.
However, if you are in need of extra cash at closing, that interest rate may be raised. This results in income to CMG which we can pass on as a credit to you.
Credit Report Fee
This is the charge for obtaining your credit history from a credit reporting agency. We only charge what is billed to us. If you include a check for a credit report with your loan application, and the actual report costs less, then we will refund the difference after settlement.
Appraisal Fee
Lenders require a report that analyses the estimated market value of a property based upon recent sales of similar properties. Corridor Mortgage Group will order the appraisal and only charge what is billed to us.
With "Automated Underwriting" this fee may be reduced based on the data contained in the FNMA or FreddieMac data banks.
Processing Fee
This is a Broker Fee charged for the physical processing of your loan application.
Yield Spread Premium
This is not an expense to you the borrower. However, it does represent income to us as a mortgage broker and will be revealed on the settlement statement, called the HUD-1. Investors pay a fee to mortgage brokers for selling their particular loan product. This amount varies on a daily basis and is closely tied to market conditions and interest rates.
Good Faith Estimate
At Corridor Mortgage Group we don't surprise you with hidden fees at the last moment. You will know up front the charges and expenses associated with your loan transaction. Our loan officers will go over in frank detail all the items of expense as listed on the "Good Faith Estimate" of closing costs. Your satisfaction and good will are vital to our long term success in the mortgage business.
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