MAKING SENSE OF CLOSING COSTS

Knowing what fees to expect when purchasing or refinancing a home can leave you feeling far more comfortable. Rest assured that TruWest offers flat rate fees without any hidden costs. You will also receive a Good Faith Estimate upfront, so you are prepared for mortgage closing costs and settlement charges. 

That’s our TruDifference: ensuring you have all the information you need to make the right decisions. 

Origination Fee

The origination fee includes items needed to originate the loan such as document preparation, broker’s fee and underwriting expenses. When applying, check with your loan officer to see if you qualify to have the origination fee financed within your mortgage loan amount. 

Discount Points

Also known simply as points, these are a way of buying down your interest rate for the term of your loan. The more points you pay, the lower your interest rate and monthly payment may be. One point is equivalent to 1% of the loan amount.

Out-of-Pocket Expenses

These cover third-party services such as appraisals, credit reports, deed recording and tax services.

Prepaid Items

Homeowner’s insurance, private mortgage insurance, real estate taxes and deposits for establishing an escrow account are considered prepaid items. Based on your closing date, you may be required to pay some interest and property taxes as well. Of course, you’ll have the option to set up an escrow account that will help you save toward future property taxes and homeowner’s insurance.

Call (480) 441-5900 in AZ or (512) 996-4000 in TX to speak to a mortgage professional today.