Closing Costs on Mortgage Loans? | How much are the lender fees

Lender fees and common closing costs explained for a home mortgage. Processing, Underwriting, Origination or discount points are paid to the mortgage lender,

Appraisal, Credit report, Escrow or Attorney fees, Title insurance, recording, notary and many escrow companies and title fees have numerous add-ons such as loan tie in fee, printing fee, electronic BS fee (sounds like a lot of BS from title and escrow - that part is!) and there are other fees depending on the companies chosen.  These fees are paid to third party companies and not to the mortgage lender.

Most reputable companies will only charge you a processing and underwriting fee,  Points can be charged based on the rate chosen.  In most cases, you can have a higher interest rate to reduce or eliminate these fees. The rest of the fees, go to other companies and have nothing to do with the mortgage lender.

There are other costs associated with a mortgage loan such as pre-paid interest - which is interest charged per day from the day you close the loan until the last day of the month. Close on the 15th and pay 15 days interest, close on the 25th and pay 5 days interest etc.  Property taxes vary by state and by the month of the year. t of Appraisal Fees, Credit report fees, and possibly points.

Points are a direct result of the cost of the interest rate on the day the loan was locked.  The more the points paid - the lower the interest rate.  The less the points charged- the higher the interest rate.  This is very standard in the mortgage industry and this see-saw method is used by every company and bank that does mortgages.

Appraisal fees.  These fees are paid directly to an appraisal management company which is a requirement by federal law.  The appraisal management company pays the appraiser.

The fees will vary from one escrow fee for a refinance loan and a much higher fee for a purchase.  There is more work for a purchase loan than for a refinance transaction so the fee is usually justified.
Attorney fees as you probably already expected are considerably higher than the escrow fees.

Again, the mortgage company does not receive the attorney or escrow fees.  They are paid directly to those entities.

Some (but not all) of what are often called junk fees are:
Doc Printing fees (I've seen printing 75 -100 pages as high as $250)
Wire Fees
Email Fee
Loan Tie in Fees
Endorsements
Courier Fees
And more.

Some are reasonably legitimate,  others... not so much!

Title Insurance, while certainly necessary, these fees are paid to the title insurance company, not the mortgage lender.

A short list of their potential fees are:
Title - Closing/Settlement Fee
Title - Lender’s Title Insurance
Title – Title Exam/Search Fee
Title – Deed Preparation
Title – Closing Protection Letter
Title – Courier/Wire
Title – Tax Report
Title – Doc/Processing Fee

Other fees that do not go to the mortgage company: Notary fee, Recording fees, and others.

Now if that is not enough, there are other costs that are not considered fees! What is the difference?  It will be obvious!  these costs are prepaid interest on the mortgage, Homeowners insurance (usually 1 year and 3 months up from to close the loan) and lastly property taxes.    The amount of property taxes collected in California (it may be different in your state) ranges from State to state but can be as little as 2 months or as much as 10 months.

The explanation of what are closing costs are included in this video including all fees of a mortgage.  Credit reports fees
loan fees
underwriting fees
title fees
escrow fee
attorney fees
appraisal fee
processing fees
recording fees
notary fees

and more... I'm sure you're tired of reading about closing costs and loan fees so just watch the video and learn.


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