Settlement Costs Estimates Fee Average Cost(s) Administration $250.00 Application 250.00 Appraisal 300.00 Attorney fees 300.00 Credit report 25.00 Document preparation 150.00 Escrow 735.00 Fire insurance 300.00 Flood certificate 20.00 Home insurance 300.00 Origination fee (points) 2,500.00 Pest Inspection 150.00 Private Mortgage Insurance (PMI)** 2,500.00 Processing 500.00 Recording fee 75.00 Tax services 60.00 Title examination 150.00 Title insurance 300.00 Underwriting 300.00 TOTAL (3.66% of $250,000) $9,165.00 * Based on a $250,000 mortgage. Costs may vary by lender. ** If down payment is less that 20% of the loan amount.
What is Private Mortgage Insurance? Your lender may advise you to set up an escrow account should your down payment be less than 20% or if you’re a high credit risk. Less money down means the greater the risk the lender needs to assume. So to guarantee your property tax payments and private mortgage insurance (PMI) premiums, a small percent of your mortgage will be set aside each month to cover your payments. Your PMI rate will vary based on the mortgage amount and covers the lender in the event you default on your payment.
