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Questions About Costs

Questions about Costs

  • What will a loan cost?
  • What are the costs that are included in my loan payment?
  • Will I have to pay any loan fees if I complete a pre-qualification loan purpose form on PacificAllyMortgage.com?
  • What are approval costs?
  • What closing cost will I pay?
  • What does rolling in these fees mean?

What will a loan cost?

Your monthly payments go partly to repay your loan and partly to pay the fees for your loan, many of them relating to the closing, or settlement.

Most lenders require an up-front application fee to cover their expenses as they approve you.  But PacAlly doesn’t.  That’s right – with us, it’s free to apply!

Additionally, lenders charge a loan origination fee.  It’s generally expressed as a single point (a point is defined as 1 percent of your loan amount).  For example, if you were borrowing $100,000, your loan origination point would be $1,000 ($100,000 x 1%).

The typical fees that cover the loan processing and closing are:

Lender Fees

  • Origination Fee
  • Discount Fee
  • Processing Fee
  • Appraisal Fee
  • Credit Report
  • Inspection Fee ( Newly constructed homes only)
  • Underwriting Fee
  • Document Preparation/Review Fee
  • Tax Service Fee
  • Flood Certification Fee
  • Mortgage Insurance

Title-Escrow Charges

  • Escrow Fee
  • Title Insurance
  • Transfer Tax
  • Recording Tax
  • Wire Fee
  • Email Document Fee

Miscellaneous Charges

  • Property Survey
  • Termite Inspection

Prepaid Expenses

  • Prepaid Interest (interest that accrues between closing and the end of the closing month – paid in advance)
  • Homeowner’s Insurance
  • Real Estate Taxes

What are the loan costs that are included in my loan payment?

At the least, your loan payment will consist of the principal and interest for one month. In some states, you may electo to have your insurance and taxes prorated and added onto the monthly clost. In other states, it may be required that you pay for insurance and taxes as part of your loan monthly payment.  This money would be placed in an impound or escrow account by the lender.

Will I have to pay any loan fees if I apply for a loan on PacificAllyMortgage.com web site?

PacificAllyMortgage.com fees are the same regardless of application method.

What are the appraisal costs?

For a purchase loan, PacificAllyMortgage.com pays the appraisal cost and doesn’t charge you until your loan closes.  PacificAllyMortgage.com will hire the appraiser.  Most lenders pass this cost on to you immediately.  The appraisal determines the value of the property in question, which becomes a prime factor in determining the loan-to-value (LTV) ratio (the amount of your loan divided by the value of your property),  Your LTV is important because it determines your equity in the property.

What closing costs will I pay?

PacificAllyMortgage.com offers loans with and without closing costs, depending upon what type of loan you want and the amount of money you are borrowing.

What does rolling in these fees mean?

PacificAllyMortgage.com give you the option of rolling these funds into your loan amount.  This allows you to get your loan with no out-of-pocket expense, but your loan amount will be slightly higher.  The alternative to rolling the costs into your loan is to provide these funds yourself when the loan closes.  You”ll be borrowing a smaller loan than with a roll-in, but you will incur immediate out-0f-pocket expense.

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