Estimated Fees and its Effect

Author Message
Icon Mini Profile Sam
Sam
Site Admin


Joined: 21 May 2005

Posts: 229
Location: CALIFORNIA


110.35 Dollars($)

PostPosted: Tue Aug 16, 2005 2:08 am    Post subject: Estimated Fees and its Effect

Estimated Fees and its affect on APR?

The total payment in mortgage depends on the principal amount, interest and closing costs or estimated fees.

The estimated fees include fees paid at the time of closing the loan, that is, when the mortgage deal is finalized by the lender and borrower. The estimated fees include:
  • Origination fee,
  • Discount points,
  • Appraisal fee,
  • Underwriting fee,
  • Processing fee,
  • Property taxes and
  • Mortgage insurance premium etc.

Like points, estimated fees also vary with the different loan programs.

The total monthly payment varies with the estimated fees since the interest is now calculated on the loan amount along with the estimated fees added to it.

The effective interest rate is known as the Annual Percentage Rate or the APR. The APR thus depends on the estimated fees and helps to select the cost effective loan programs. The estimated fees as well as the APR vary with each loan program offered by a lender.

Related Article
 
image
Quick Reply
Your Name
Subject
Message body

All times are GMT - 7 Hours
Page 1 of 1

 
Ask Questions
Community Experts
Cliff Pape - market Analyst Cliff Pape
Market Analyst
Houston, Texas






 
Highlights
Related Readings
Bankruptcy
Mortgage Loan Modification
Mortgage after foreclosure
Avoid Foreclosure


Helpful References
Mortgage Terms
Mortgage News
Book Center
Mortgage Guide
Shop and Compare lenders


Community Rewards
Five simple ways to earn money with the Mortgage Community.

New and upcoming tools
Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool


 



About Us  | Contact Us  | Privacy Policy  | Testimonials  | RSS Feeds  | Site Map 
We have chosen to apply the Creative Commons Attribution License to all works we publish.
This work is licensed under cc by 2.0