-Appraisal Costs
In our changing market home values are changing all the time so Lenders
usually require a new appraisal. All Appraisers are third party companies
not affiliated with Envision Lending and need to be paid at time of service.
With a new Purchase the appraisal can be included in the loan and paid
at time of closing at the escrow company. This is because Buyers put down earnest money which shows a commitment to complete the deal.
With a refinance there is no earnest money so the Appraiser requires
the Borrower to pay for the appraisal at time or service. If the Borrower then decides not to complete the loan at least the appraiser has been paid for his work.

-Lender Fees
All Lender have certain fees that are not negotiable with the Loan Officer. The Lender is also a third party. Fees usually include, Tax service fee, Underwriting Fee, Credit Report Fee, Wire Transfer Fee, Processing Fee, Loan Discount Fee, Application Fee. Some lenders Fee's vary but for the most part they all total the same.

-Title Company Fees
Title companies are also a third party fee that is not controlled by the Mortgage Broker. The title company is an independent third party which collects the paperwork form the Lender, the Borrower and the Mortgage Broker and will provide all the final documents for the Borrower to sign. The title company also will deliver clean title to the Borrower and provide title insurance. Title insurance is required on all Purchase and Refinance transactions. The Title company will disburse all monies and record title with the local county recorders office which marks the close of escrow and completion of the loan.

-Impound Accounts (Taxes and Insurance)
Some payments collect monthly property taxes and hazard insurance payments on the subject property. This is your money collected to pay your bills. This is not a fee. Some Borrowers prefer to pay their own taxes and insurance separately. Some lenders allow this, some do not. Usually the interest rate is a little higher when the Borrower chooses to pay their own taxes and insurance.

-What are Points?

-Discount Points
Discount Points are prepaid interest on the loan. Also known as 'buying down the rate'. If you choose to have a lower interest rate you can 'buy down' the rate with discount points. One discount point equals one percent of the loan amount.

For example: One discount point on a $100,000.00 loan is equal to $1,000.00. The lower you buy the rate the more discount points are charges from the Lender. Discount points are tax deductible. Consult your tax advisor.

-Origination Points
Origination points are calculated the same way as Discount points. This is the cost of doing the loan to the mortgage company and covers over head. If the Borrower prefers to pay no origination or discount points then the Lender will increase the interest rate.
Origination points may also be tax deductible. Consult your tax advisor.

Generally, if you plan to be in the home a short period of time you want to pay less points up front which will give you a higher interest rate and higher payment. If you plan to stay in the home a longer period of time you want to pay points up front which will lower the interest rate and lower the payment.