Understanding the Good Faith Estimate

• What are "Discount Points"?

Discount points buy down the interest rate.

• What is the "Appraisal Fee"?

Appraisal fee is the estimated cost of the appraisal and are only good for 90 days.

Processing fee is the fee we charge to process the loan

Underwriting fee is the fee we charge or are charged to underwrite the loan

Other lender fees are paid directly to our lenders if we broker the loan.

Prepaids show how many months of taxes and insurances will be taken to set up your escrow account.

It’s important to note that prepaids aren’t a cost of refinancing. However, the money has to come from somewhere to cover the amounts necessary to open the account. Temporarily you will be out of pocket this amount until you get the money refunded from the old loan’s escrow account unless you roll it into your loan.

Title insurance is what we are charged for title insurance on your loan. All we require is a lender’s policy for your loan amount. An owner’s policy will give you a 20% discount on the face value it’s amount.

State closing fee and taxes on your loan are what the state charges to record the mortgage. These are usually exact tax amounts. The recording fee varies from $125 to $250

Survey’s are required except on condo’s and town-homes. We can use your old survey less than 10 years old