| HUD 1 ITEM |
DESCRIPTION |
800 Items Paid in Connection
with Loan |
800 One-time
fees that are part of the process of approving and make the loan at the interest rate you
have requested. |
801 Lender’s Loan
Origination Fee |
801 A fee charged to the
borrower by the lender for making a mortgage loan. The fee is usually computed as a
percentage of the loan amount. |
802 Lender’s Loan Discount
Fee |
802 A one-time only fee
(point) by the lender to offer the interest rate you are receiving. Each point is equal to
1% of the mortgage amount. This may be tax deductible (entire amount in first year on
purchase, spread over life of loan on refinance) - consult your tax advisor. |
| 803 Appraisal Fee |
803 Payment to an
appraiser to research and assess the market value of the property on which a mortgage is
being placed. The appraisal is required in order to determine the security of the loan and
the borrower’s Loan to Value (LTV) ratio. Appraisals cost $250-$450 depending upon
your local market. Investment property appraisals cost an extra $100-$200 due to the extra
forms required on investment appraisals. |
| 804 credit report |
804 This fee is charged by
a credit service agency to provide the lender with a report detailing a borrower’s credit
history. We require an independent credit report, so we cannot reuse any prior credit
reports you may have. If your credit
report has information on it that you believe to be inaccurate we might need to order a
full report that will cost $58. |
| 808 Tax Service Fee |
808 A lender requires
research of the records of the Registry of Deeds for the county in which the property
lies. Each property is reviewed to confirm that the taxes are paid in full and up to date.
Any unpaid property taxes are a liability to the lender. |
| 809 Underwriting Review |
809 This is a charge for reviewing your application. |
| 814 Yield Spread Premium |
814 This amount is paid by
our investor to us for closing your loan. This amount is not paid by you, nor does it
increase your closing costs. |
| 816 Origination Due Broker |
816 This is another source of
income on the loan for a broker. Each point is equal to 1% of the mortgage amount. This may be tax
deductible (entire amount in first year on purchase, spread over life of loan on
refinance) - consult your tax advisor. This and line 802 combined total the amount of points due on your loan. |
| 818 Processing Fee |
818 The fee for
handling your paperwork. |
| 819 Escrow Waiver Fee |
819 If you choose to pay
your taxes and insurance separately from your regular monthly mortgage payment you will
pay this one-time fee. This fee is not imposed by us and we do not receive any of this
fee. |
900 Items Required by
Lender to be Paid in Advance |
900 Items that you
may be required to prepay at the time of settlement, such as accrued interest, mortgage
and hazard insurance premiums. |
901 Interest for XX
days at $XXXX per day |
901 Prepaid interest
due on the new loan from the date of funding to the end of the month. Every mortgage
lender clears any interest due at time of closing for the month the closing takes place.
we use a 15 estimate. If you close early in the month you will owe more
interest, if you close later you will owe less. Please keep in mind that you will have one
month without a mortgage payment after closing. So if you close Jan 15, your first regular
payment will not be until March 1st. |
902 Mortgage Insurance
Premium |
902 Private Mortgage
Insurance (PMI) may be required on certain loans. It is paid by the borrower and insures
the lender against certain losses in the event of a foreclosure. |
903 Hazard Insurance
Premiums |
903 A lender will
require you to insure the property you are buying, since the property is the collateral
for the loan. At the time of closing you must pay the entire first year’s premium. If you
already have hazard insurance, contact your insurance company and ask them for a copy of
your insurance policy to show the lender. We are estimating the amount of the
coverage, and every borrower is free to choose the insurance provider. We will
replace this figure with your actual amount once we know what the exact amount will be. |
904 Flood Insurance
Premiums |
904 If your property is in
a flood zone flood insurance may be required. It is paid by the borrower and insures the
borrower and lender against certain losses in the event of a flood. |
1000 Reserves Deposited with
Lender |
1000 Reserves
held by the lender in an escrow account to pay for the borrower’s future insurance
premiums and taxes. Commonly referred to as Impounds or Escrows |
1001 Hazard Insurance:
months at $ /mo. |
1001 Impounds may be
required on loans with Loan to Value (LTV) ratios over 80%. |
1002 Mortgage Insurance:
months at $ /mo. |
1002 Impounds may be
required on loans with Loan to Value (LTV) ratios over 80%. |
1004 Property Taxes:
months at $/mo. |
1004 Estimated amount
necessary to set up your escrow account. Your property taxes are being estimated at this
point, and may be high or low in this assumption. Your title company will provide us with
the final (and accurate) amount due prior to closing. |
1006 Flood Insurance
Impounds |
1006 Impounds may be
required on loans with Loan to Value (LTV) ratios over 80%. |
| 1100 Title Charges |
1100 Covers a
variety of services performed by the title company and others. We have estimated these
fees except for the $150 document preparation fee on line 1105. |
1101 Settlement of
Closing/Escrow Fee |
1101 The fee paid to the
escrow company for handling all the financial transfers and payments associated with the
transaction. We have estimated the fee, but set by the closing firm your select. |
1105 Document Preparation
Fee |
1105 Pays for the service
of creating your loan documents. |
| 1106 Notary Fee |
1106 Several documents you
sign during the loan must be notarized. |
| 1107 Attorney Fee |
1107 Some states require
an attorney handle the closing. If you live in one of those states this is our estimated
fee for their services. We do not set this fee, and you are free to negotiate this
with the attorney you select to handle your closing. |
| 1108 Title Insurance |
1108 Guarantees that your
home has no other liens on the property and guarantees your undisputed ownership. All
lenders require that you have title insurance on the home. |
| 1112 Title Search |
1112 Most closing firms
will require the title history on your loan to be reviewed before they can issue a new
title policy. Most firms include this in their general fees (line 1101). We list it
separately to be conservative. |
1200 Government Recording
Transfer Fees |
1200 Fees
paid by either the buyer or seller at the time the purchase agreement is executed. |
| 1201 Recording Fees |
1201 To create a public
record of your legal ownership of the property, the lenders notify the county government
to record the transaction. The recording fee, which varies by state, is paid to the
county. |
1202 City/County
Tax/Stamps |
1202 Stamps, affixed to
the deed, showing the amount of transfer tax paid. Most states stamp the deed rather then
actually affixing a stamp. Many localities collect a transfer tax whenever a property
changes hands. |
| 1203 State Tax/Stamps |
1203 Stamps, affixed to
the deed, showing the amount of transfer tax paid. Some collect a mortgage tax
anytime a new mortgage is recorded. |
1300 Additional Settlement
Charges |
1300 A grouping of
other misc. fees and credits |
| 1301 Survey |
1301 Some states require a
survey before the loan can be fully approved and cleared for closing. The actual cost is
set by the title firm and has been estimated here. |
| 1305 Flood Certification |
1305 Cost of the flood
zone determination to confirm if the property is /is not in a flood zone. |
| 1307 Funding Fee |
1307 The cost of the wire
transfer. |
| 1308 Paid Fees / Costs |
1308 This is the amount of
money that we are crediting you at closing. It is listed as rebate/negative points on
your Service Agreement |
