Homes And People

BUYER’S CHARGES (buyer getting a VA loan) 1. Purchase Price 2. Mortgage Title Policy 3. Miscellaneous Title Endorsements as Required by the New Lender (see title commitment) 4. Recording Fees 5.. Tax Certificate 6. Doc Fee (.01 cent per $100 of sales price) 7. Insurance Reserve Account* 8. Tax Reserve Account 9. VA Funding Fee* 10. Loan Origination Fee* 11. Discount Points* 12. Premium for Hazard Insurance 13. Survey* 14. Credit Report* 15. Appraisal Fee* 16. Interest on New Loan* 17. Miscellaneous Loan Fees per New Lender* 18. Express Mail Fees (if applicable) * *Amounts Determined by the New Lender Note: Seller can pay all closing costs and pre-paids for the buyer if agreed to all parties in the sales contract.

VA LOAN SELLER’S CHARGES (Buyer getting a VA loan) 1. Loan Payoff (per existing lender’s payoff letter) 2. Commissions (per contract) 3. Title Insurance 4. Prior Year Taxes Due 5. Prorated Taxes for the Current Year 6. Water & Sewer Bill 7. Discount Points* 8. Tax Service Fee* 9. Real Estate Closing Fee 10. Document Preparation* (if applicable) 11. Miscellaneous Loan Fees per New Lender* 12. Express Mail Fees (if applicable) 13. Homeowners Dues, Fees, etc. *Amounts Determined by the New Lender Note: Seller can pay all closing costs and pre-paids for the buyer if agreed to all parties in the sales contract.

BUYER’S CHARGES (buyer getting an FHA loan) 1. Purchase Price 2. Mortgage Title Policy 3. Miscellaneous Title Endorsements as Required by the New Lender (see title commitment) 4. Recording Fees 5. Loan Discount Fee 6. Doc Fee (.01 cent per $100 of sales price) 7. Hazard Insurance Premium (1st year) and reserves 8. FHA Mortgage Insurance *premium and. Reserves 9. Loan Discount Fee- as per contract 10. Tax Reserve Account 11. Survey* 12. Credit Report* 13. Appraisal* 14. Interest on New Loan* 15. Express Mail Fees (if applicable) 16. Real Estate and Loan Closing Fees 17. Homeowners Dues, Fees, etc. *Amounts Determined by the New Lender Note: Buyer must pay all prepaid expenses. All other charges are negotiable if agreed to by all parties in the sales contract.

FHA LOAN SELLER’S CHARGES (buyers getting an FHA loan) 1. Loan Payoff (per existing lender’s payoff letter) 2. Commissions (per contract) 3. Title Insurance-Owner’s Title Policy 4. Tax Certificate 5. Prior Year Taxes Due 6. Prorated Taxes for the Current Year 7. Water & Sewer Bill 8. Record Release of Existing Loan 9. Inspection Fee* 10. Loan Discount Fee* -as per contract 11. Assignment of Deed of Trust* (if applicable) 12. Document Preparation* (if applicable) 13. Tax Service Fee* 14. Real Estate Closing Fee 15. Express Mail Fees (if applicable) 16. Homeowners Dues, Fees, etc. *Amounts Determined by the New Lender Note: Buyer must pay all prepaid expenses. All other charges are negotiable if agreed to by all parties in the sales contract.

CONVENTIONAL LOAN BUYER’S CHARGES 1. Purchase Price 2. Mortgage Title Policy 3. Miscellaneous Title Endorsements as Required by the New Lender (see title commitment) 4. Recording Fees 5. Tax Certificate 6. Doc Fee (.01 cent per $100 of sales price) 7. Insurance Reserve Account* 8. Tax Reserve Account 9. Premium for Hazard Insurance 10. Loan Origination Fee* 11. Survey* 12. Credit Report* 13. Appraisal Fee* 14. Interest on New Loan* . 15. Miscellaneous Loan Fees per New Lender* 16. Tax Service Fee* 17. Real Estate and Loan Closing Fees 18. Homeowners Dues, Fees, etc. *Amounts Determined by the New Lender. Note: All closing costs are negotiable but must be agreed to by all parties in the sales contract.

CONVENTIONAL LOAN SELLER’S CHARGES 1. Loan Payoff (per existing lender’s payoff letter) 2. Realtors commissions (per contract) 3. Title Insurance 4. Prior Year Taxes Due 5. Prorated Taxes for the Current Year 6. Water & Sewer Bill 7. Record Release of Existing Loan 8. Real Estate Closing Fee 9. Express Mail Fees (if applicable) 10. Homeowners Dues, Fees, etc. As always we are happy to help you if you have any questions.

"Option Arm" What You Need To Know Seems like we all want the latest and hottest "thing" these days, and even some mortgage loans are no exception. The lending industry seems intent on seeing everyone in America become a homeowner by introducing new adjustable rate loan products that give a false impression that home ownership is both cheap and affordable despite soaring home prices. Contrary to the good advice of many financial experts, more and more would-be and current homeowners are being lured into loans that can backfire and possibly even render you homeless in a few years if your income cannot keep pace with increasing monthly mortgage payments and a rising interest rate environment. One of these adjustable loan products introduced to the average consumer is the "Option ARM" home loan, also known by several names like "Pick-A-Pay Loan", the "Flex Pay Loan", "Flex Option ARM", and "Pay Option ARM", among others...

All mortgages can be divided into two main conventional and government loans. Additionally, each of the various mortgage programs can further be classified as fixed rate loans, adjustable rate loans, or a combination of the two. Fixed Rate Mortgages With fixed rate mortgage (FRM) loans, the interest rate and monthly payments remain fixed for the period of the loan. Fixed-rate mortgages are available for 40, 30, 25, 20, 15, and 10 years. Generally, the shorter the term of a loan, the lower the interest rate. The most popular mortgage terms are 30 and 15 years. With the traditional 30-year fixed rate mortgage, monthly payments are lower than they would be on a shorter term loan. But if a borrower can afford higher monthly payments, a 15-year fixed-rate mortgage allows repayment twice as fast and saves more than half the total interest costs of a 30-year loan. The payments on fixed rate fully amortizing loans are calculated so that at the end of the term the mortgage loan is paid in full....

All mortgages can be divided into two main categories: conventional and government loans. Additionally, each of the various mortgage programs can be classified as fixed rate loans, adjustable rate loans, or a combination of the two. In this technical bulletin, we’ll discuss government and conventional loans, including conforming vs. non-conforming loans. Government vs. Conventional Loans About 20% of all home loans in the U.S. are insured or guaranteed by an agency of the federal government and are considered government loans. The remaining 80% of residential mortgages are referred to as conventional loans. GOVERNMENT LOANS FHA Loans: The Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD), was established in 1934 during the Depression in order to stimulate the U.S. housing market. The FHA administers various mortgage loan programs, although the FHA is not a money lender; instead it issues federal insurance against losses to...