Typical Mortgage-Related Fees
Applying for a mortgage can be a complicated process, even for those who have completed it before. This is largely because of the number of fees included in your application and also ongoing during your mortgage term. To help shed some light on some of the most common fees you can expect to encounter, AREA Title Agency, Inc. has a post below to share.
Establishment Fee
Right off the bat, you will see a Mortgage Establishment Fee or an Origination Fee. While it can seem early to pay fees, this fee covers the administration costs of setting up your mortgage and its associated account. This includes any administration costs along with finance and security checks required by your lender’s underwriter.
Ongoing Account Fees
In addition to establishing your account, you will also likely come across Ongoing Account Fees. Similar to the above, this fee covers any administration costs associated with keeping your mortgage account active.
Early Repayment Fees
Most homeowners are happy to make their agreed repayments until the mortgage has been repaid. However, some homeowners like to make additional payments when they receive company bonuses or receive additional funds. While this works well for the homeowner who pays less interest over the term, it doesn’t work so well for the lender who calculated their repayments based on the interest they projected they would earn. Some lenders can look to recoup a portion of this interest with this fee. Check with your lender before you apply.
Lender’s Title Insurance
While insurance, this is listed as a fee because you will need to pay it before your mortgage is approved. This fee provides financial protection to your lender in the event that a claim to ownership is raised against your new home’s title.
Homeowner’s Title Insurance in Toledo, OH
Similar to Lender’s Title Insurance, this covers you, as a homeowner, if an undiscovered heir or fraudulent transfer is discovered and a claim is made against the title of your home. To protect yourself from this eventuality, speak with AREA Title Agency, Inc. by calling (419) 242-5485to find out more about title insurance in Toledo, OH before you sign on that dotted line and take ownership of your new investment.
