Know the numbers

There are several costs associated with securing a mortgage. The exact amounts vary by lender, loan program, and property, but common expenses include:

• Lender Fees: May include origination, underwriting, processing, application, or credit-report charges. These vary considerably, which is why comparing fees matters just as much as comparing rates.
• Discount Points: Optional fees paid at closing to reduce your interest rate. One point equals 1% of the loan amount, but the rate reduction you receive will vary.
• Appraisal Fee: Covers the lender-required appraisal used to evaluate the property’s market value. The cost depends on the property and complexity of the assignment.
• Other Financing Charges: May include flood certification, tax-service, rate-lock, or other loan-related fees.
• Prepayment Penalty: Uncommon with most residential mortgages, but your lender should confirm whether one applies.

The APR is not a separate fee. It reflects the interest rate plus certain financing charges and can help you compare the overall cost of similar loan options.

Your lender will provide a formal Loan Estimate detailing the anticipated terms, payment, and costs. Before closing, you’ll receive a Closing Disclosure showing the final figures. We’ll help you review the numbers, identify anything that deserves a closer look, and make sure you know what questions to ask. Nothing should feel buried or unclear.