$3,700
The most common closing cost is the down payment. In addition to making your down payment, there are other costs and fees associated with your home purchase. Average closing costs generally range from $2,500 to $5,000 or about 6% of your loan – a sizable amount of money when you consider this is paid upfront at closing. Many of your mortgage closing costs go to a third-party for services necessary to complete the transaction. Lenders typically have no control over these fees. 1  Appraisal ($225 – $450). 2  The appraisal is required to determine the fair market value of the home. 1 Cost-Private mortgage insurance typically costs between 0.5% to 1% of the entire loan amount on an annual basis. 2  On a $100,000 loan this means the homeowner could be paying as much as $1,000 a year, or $83.33 per month-assuming a 1% PMI fee. For a couple with a $250,000 loan and a $2,500 annual PMI payment (1% of the outstanding loan), this deduction could translate into savings of $300 to $400 dollars or more (depending upon the couple's tax bracket). Also private mortgage insurance often can be paid up front. Six Good Reasons to Avoid PMI. 1  Cost-Private mortgage insurance typically costs between 0.5% to 1% of the entire loan amount on an annual basis. 2  On a $100,000 loan this means the homeowner could be paying as much as $1,000 a year, or $83.33 per month-assuming a 1% PMI fee. For a couple with a $250,000 loan and a $2,500 annual PMI payment (1% of the outstanding loan), this deduction could translate into savings of $300 to $400 dollars or more (depending upon the couple's tax bracket). Also private mortgage insurance often can be paid up front. They are typically broken down into mortgage points, which are expressed as a percentage of the loan amount. So if the loan amount is $100,000, and you see a $1,000 loan origination fee on the paperwork, the bank or broker is charging you one (1) mortgage point. Go figure. In the example above, the loan origination charge is $1,840 on a $348,000 loan amount, which makes the fee roughly half a percentage point (.50%). This particular broker charged a $250 origination charge, a $695 processing fee, and an $895 underwriting fee, which combined make up the $1,840 total. Origination Fees. The loan origination fee is the fee charged by the lender for processing a loan application. Origination fees, sometimes called origination points, are generally determined as a percentage of the total loan cost and usually range from .5 percent to 1 percent, or .5 to 1 point, of the loan. Typically, home buyers will pay between about 2 and 5 percent of the purchase price of their home in closing costs. So, if your home cost $150,000, you might pay between $3,000 and $7,500 in closing costs. On average, buyers pay roughly $3,700 in closing costs, according to a recent survey. Lenders are required by law to give you a good faith estimate (GFE) of what the closing costs on your home will be within three days of when you apply for a loan. 1 A fee for running your credit report. 2  A loan origination fee, which lenders charge for processing the loan paperwork for you. 3  Attorney’s fees. 4  Charges for any inspection required or requested by the lender or you. 5  Discount points, which are fees you pay in exchange for a lower interest rate. 6  Appraisal fee. Closing costs are all the fees associated with getting a mortgage. According to its annual survey of mortgage rates, Bankrate.com reports that the average closing costs in the U.S. in early 2010 were $3741, based on a $200,000 loan with a 20-percent down payment. Origination fees, sometimes called origination points, are generally determined as a percentage of the total loan cost and usually range from .5 percent to 1 percent, or .5 to 1 point, of the loan. On average £500 or a commission depending on the value of the mortgage. Higher lending charge. Not all lenders charge this fee and it’s only likely to be a requirement if you have a small deposit, as this pays for the lender’s insurance if you can’t pay back the mortgage and they have to sell your property at a loss. If you’ve paid this fee, then it’s unlikely that you’ll need to pay the exit fee (see below) although an early repayment charge (see below) may still apply if you close the mortgage early. Typically £100-300. Missed payments. Some lenders may charge a fee or fees if your account is in arrears. Cost range = $150 to $400. Prepayment penalty. Some lenders charge a fee if you pay off your existing mortgage early. Loans insured or guaranteed by the federal government generally cannot include a prepayment penalty, and some lenders, such as federal credit unions, cannot include prepayment penalties. Refinancing fees vary from state to state and lender to lender. Here are some typical fees and average cost ranges you are most likely to pay when refinancing. For more information on settlement or closing costs, see the Consumer's Guide to Settlement Costs. Tip: You can ask for a copy of your settlement cost papers (the HUD-1 form) one day in advance of your loan closing
http://www.quickenloans.com/blog/closing-costs-and-fees-explained http://www.investopedia.com/articles/pf/07/avoid_pmi.asp http://www.investopedia.com/articles/pf/07/avoid_pmi.asp http://www.thetruthaboutmortgage.com/mortgage-dictionary/loan-origination/ http://homeguides.sfgate.com/normal-fees-mortgage-loans-7578.html http://www.zillow.com/mortgage-learning/closing-costs/ http://homeguides.sfgate.com/normal-fees-mortgage-loans-7578.html https://www.moneyadviceservice.org.uk/en/articles/mortgage-related-fees-and-costs-at-a-glance http://www.federalreserve.gov/pubs/refinancings/
average fee for paying up mortgage