Commissions on mortgage loans in the USA

Buying a new or used home in the United States is not very different from other countries with well-established rules for these types of negotiations. However, it can be a lot of paperwork when you turn to a home loan and you don’t have the money to expedite the transaction. To give you an idea of ​​the commissions that include US mortgages, we give you the details.

Common commissions to close a mortgage loan in the USA

When we talk about completing a mortgage operation in the US, we must consider the costs associated with it. On average, closing fees are 2-5% of the total loan amount. Since it is not advisable to include them in the financing for interest, we suggest you disburse the sum through a single payment.

Fixed mortgageFixed mortgage

  • Interest: From 3%
  • Deadline: 30 years

More infoRequestVariable rate mortgageVariable rate mortgage

  • Interest: LIBOR + spread
  • Deadline: 30 years

More infoRequestFixed mortgageFixed mortgage

  • Interest: 3.13
  • Deadline: 30 years

More infoRequestVariable or adjustable mortgageVariable or adjustable mortgage

  • Interest: LIBOR + 2.25%
  • Deadline: 30 years

More infoRequestFixed rate mortgageFixed rate mortgage

  • Interest: Consult
  • Deadline: 30 years

More infoRequest

On the other hand, buying a home is a big step that requires a good comparison of the available offers. If it is your first home, do not hesitate to find out about the first-time buyer aids or programs. In addition to these resources, you have the information from Hispanic Business Blog to make a better decision.

Since the lender is required to describe closing costs in the mortgage estimate, it is important to review it to understand the different fees it includes:

  • Property inspection fee (home inspection). It is a mandatory fee when you apply for a government-backed mortgage, such as the FHA option (Federal Housing Administration). The bank must ensure that the home has the minimum habitability conditions. If the problems are not serious, you can even negotiate a discount. This costs you about $ 300 to $ 500.
  • Appraisal cost (Appraisal fee). First of all, the financial institution must know how much the house or apartment is worth to know if it can recover the money in case you cannot pay and also to justify the amount you ask for. The appraisal is done by an expert and usually costs $ 300 to $ 400.
  • Mortgage fees in the USA Application, study or research fee (Application fee). This corresponds to the administrative processing of a new mortgage loan. Depending on the estimated time to consider your request, this charge varies from one entity to another.
  • Origination commission (Origination fee). This open rate is one of the most expensive, with an average value of 0.5-1%. It is applied to compensate the evaluation of the application, the administrative preparation of the paperwork and the notarial or legal expenses.
  • Prepaid interest (Prepaid interest). In the United States, it is common for lenders to ask you to pay the interest accrued between the time of signing the contract and the first monthly installment. This will depend on the amount of the loan requested.
  • Intermediary fee (Mortgage broker fee). When you use an agency to get the best mortgage for you, it costs you a fee. It can be a fixed amount or a percentage of the mortgage amount.
  • Acquisition rate (Assumption fee). In the event that you assume the homeowner’s mortgage, you can be charged for the unpaid balance and it will depend on what remains to be amortized.
  • Legal charges (Attorney’s fees). Some states require the presence of an attorney to close a real estate deal. The cost of this requirement varies based on the hours of legal aid you accumulate.
  • Commission for Title Research (Title search fee). It serves to verify in the public records who the real owner of the property is. It is also verified if the house includes legal claims or unpaid bills that could harm you. It usually costs $ 200 USD or more.
  • Property taxes (Property taxes). It is common for buyers to pay 2 months of county and state taxes during the closing operation.
  • Fee for annual evaluations (Annual assessments). When the homeowners association requires an annual fee, this is paid in one installment and in advance.
  • Land survey fee (Survey fee). It is used to check the dimensions and limits of the property. It does not apply to condominiums, in Florida it is optional and costs about $ 400 USD.
  • Bank title insurance charge (Lender’s title insurance). Some financial institutions ask for the home insurance premium in advance. While some require a balloon payment to cover the life of the mortgage loan, others only request the first year. The insurance is worth between 0.55 and 2.25% of the purchase price.
  • Mortgage Insurance Advance Fee (Upfront mortgage insurance). If you pay a down payment of less than 20%, you must take out private insurance (PMI). Its cost varies depending on the amount covered and the insurer.

As you can see, buying a home in the USA is not cheap at all. Even so, in Hispanic Business Blog you can find the best offers on mortgages in this market, with frequently updated information .

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