closing cost

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What exactly are mortgage closing costs, title insurance, PMI, etc.?

Caron · Posted: Tue Sep 20, 2005 1:35 am Post subject: RE:

Hi Chellet
Welcome to the forums.

The closing costs include fees paid at the time of closing, that is, when the legal documents related to the mortgage loan are signed. These costs include fees paid to lenders for loan origination, loan processing, etc. Third party fees like charges for title search, appraisal etc also make up the closing costs. There are also escrow fees that include advance payments towards taxes and insurances.

Lenders approach a title search company which carries out a title search revealing the names of legal owners of the property and the type of ownership. It also finds out if the property has previous liens. The title search company then issues a title insurance that protects the title of the property against tax liens, unpaid mortgages etc. Fees are required to get a title insurance.

The PMI or the private mortgage insurance requires payments for an insurance policy which protects lenders from losses when the borrower defaults on his mortgage payments.

Hope you will be benefited from the information.
For more details please visit:
Closing Cost
Private Mortgage Insurance and
Title Insurance

Please feel free to post further queries. All sign up with us at http://www.mortgagefit.com/signup/ to get free advice on related issues.

Regards,
Caron.

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