Home Buying Seminar: Part I: Costs and Fees

I went to a home buying seminar today, here are a few of the things I learned:

Costs of home ownership
• Loan amount
• Interest rate
• Loan term
• Discount points
     -fees paid to lender at closing to lower your interest rate
     -1point=1% of loan amount
     -tax deductible

• Origination fees
     -What the lender is charging you to do the lending

What makes up a mortgage payment
• Principal loan amount
• Interest
• Taxes*
• Insurance*
• Mortgage insurance (PMI)

     -For any loan with <20 br="br" down="down">


*Escrow accounts/reserves can be created to help for these a little bit every month. The bank will then pay them from the escrow account when due.

Closing costs
• Origination fee
• Home appraisal fee
• Escrow reserves
• Property taxes
• Title insurance

Additional costs
• Utility bill
• Furnishing
• Landscaping
• Home maintenance/repairs
• Appliances
• HOA

Good faith estimate
• Loan fees
• Reserves
• Title Charge
• Government charges
• Other fees and additional charges

Well, I'm getting tire of typing so I'll make this a two parter. Tomorrow I will be posting credit and loan types.