Closing Cost

Although borrowers often think of closing costs as one lump sum, the truth is there are two categories: closing costs and escrows.

Closing Costs

This includes the fees directly tied to your loan. Some of the most common are:

• Discount points, which are connected to the rate you choose from several options we present
• An appraisal fee, if an appraisal is required
• Credit report fee
• Flood certification
• Tax service fee
• Electronic registration fee, required in many local counties in our area
• Title insurance
• Attorney fee
• Recording fees

Escrows

Escrows are different from closing costs. They include items that are set aside to cover your future obligations, such as:

• Prepaid interest, which covers each day from your closing date through the end of that month
• Your first year homeowner insurance premium, also called the binder fee
• Prorated property taxes for the home you are buying or refinancing

At Mountain Lifestyles Mortgage, we go to enormous lengths to highlight the value we offer by providing clear, simple, and transparent options. Many lenders add what are often called junk fees, such as commitment fees, processing fees, and underwriting fees. We believe these are fancy words used to either add profit or make a rate look lower than it really is by adding additional costs and not being as forthcoming with borrowers as we would want them to be if we were the consumer.

Our advice is to not take your eye off the ball. If you are feeling that you are working with someone who does not understand you or is trying to sell you something instead of hearing you and collaborating with you, give us the opportunity to show you how we have built relationships for more than 29 years, one family at a time.