Closing Costs

CLOSING COSTS YOU MIGHT INCUR IN OBTAINING A MORTGAGE LOAN ARE:**

TITLE INSURANCE POLICY-When you buy a house, it is important to have legal proof of ownership in the house. A title insurance policy will guard against the possibility of error. The cost of the policy is based on the sales price of the house.

PROPERTY APPRAISAL FEE-This fee is for an independent appraiser to furnish an opinion of the market value of the home being purchased.

DISCOUNT/LOAN ORIGINATION FEE-This fee is also know as "points". Each point equals 1% of the mortgage amount; they represent the equivalent of prepaid interest and usually reduce the interest rate on the mortgage.

MORTGAGE INSURANCE-The most common reason for this insurance is because it allows the borrower to qualify for a loan with less than the normal minimum down payment of 20%. The fee is usually .5% to 2% of the loan amount.

HOMEOWNERS HAZARD INSURANCE-An insurance policy to protect against physical damage to the house by fire, wind, vandalism and other causes must be paid for the first year, at closing.

SURVEY-A verification from a surveying firm will assure the lot and house you are buying have not been encroached upon by any other structures.

FLOOD DETERMINATION-Flood insurance is required for improved real estate located in special flood hazard areas.


Financing Options

Types of Mortgages Available

FIXED-RATE MORTGAGES

The major advantage of a fixed-rate mortgage is that it presents predictable housing costs for the life of the loan. We offer a variety of fixed rate mortgages ranging from 5 to 30 years.

ADJUSTABLE RATE MORTGAGES (ARMs)

ARMs can be an excellent choice of financing under certain conditions such as: rising income expectations, high interest rates and short-term ownership. Homeowner should be aware that payments and interest rates can increase, either steadily or irregularly, when considering this type of mortgage.