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How Much Will My Mortgage Cost?

By Colleen Colkitt

Determining mortgage price is dependent upon several factors concerning an applicant's credit and income. A mortgage is a type of long-term loan with agreements for payment varying from person to person, depending on the lender's regulations. There will be the fee for the basic mortgage underwriting, and processing and origination fees charged by the lender.

What Factors Decide My Mortgage?

Some of the main factors that determine mortgage costs include average origination fees charged by the lender of the mortgage loan, combined with the average title and third-party fees, to get the average total fees. For the state of Illinois, these costs can be roughly projected to be $3,815, since the average lender fees can be nearly $1,700 and the average title and third-party fees might be around $2,100.

Some of the factors that go into the average origination fees charged by the lender include points from credit, application fees, document preparation, processing, tax service and underwriting. In addition, there are charges for the broker that is involved in the process and also for a possible wire transfer. These typically add up to average about $1,700 or more.

Additional Third-Party Fees

Sometimes there are additional fees to factor into the purchasing of a new property. Some of these expenses might come from out of pocket, but it is important to keep these costs in mind when considering mortgage costs as well.

A home inspector might need to look at the property to evaluate the site is functioning as it should be. There could be well and septic certifications, which applies mainly to new homes, but it is important to make sure these systems work properly. For a person interested in a condo, there is a condominium questionnaire fee, which might be up to $300 depending on the particular complex. Surveys and appraisals are also possible expenses. Credit reports are fairly inexpensive; usually under $20, but the attorney or closing settlement fee can be nearly $500. The title search and title insurance are also very pricey additional costs, which can be around $1,500.

Even with just a few of these expenses the total can come to over $1,000. Some lenders only charge some of these additional items, which contribute to the overall cost of the mortgage loan. By law, lenders must provide you with a GFE, or a Good Faith Estimate of costs for the loan. Make sure to speak with your lender about the terms of the mortgage, and keep an eye out for these additional charges!

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