FHA Closing Costs
FHA Closing Costs fall into many categories and can add up. It is important to be informed as to the charges you will see on your settlement statement at closing. Make sure your broker is providing an accurate FHA Closing Costs Estimate and is available to answer your questions!
Here is a summary of some of the most important fees you will see on your FHA Closing Costs estimate:
Origination Charge: This is the total of all fees charged by your broker and the bank they are working with to provide your loan. This amount is not the amount you are paying the bank.
Adjusted Origination Charge: This is the bottom line charge that you are paying the bank for your mortgage.
Appraisal Fee: Should be in the $375-$450 range for an FHA transaction and is required on every FHA loan except and FHA Streamline Refinance.
Title/Escrow Company Charges: This is the entity who handles the closing, disbursement of the money, and insures your title against liens and other issues.
Prepaids/Escrows: Mortgage interest, homeowner's insurance, and taxes reserves collected at closing by your new lender to establish your escrow account. These funds will be used to pay your tax bill and homeowner's bill when it is due.
FHA Mortgage Insurance Premium: FHA Closing Costs include an up-front mortgage insurance premium, currently at 1.75% of the loan amount (3/2010). This fee is typically financed into the loan, so you don't normally have to bring this amount to closing.
FHA Closing Costs
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