Article Score0

I was just shopping around for condos just to get an idea, price-wise and what not and when I went to the mortgage rates section… it gives me monthly mortgage amount PLUS a different amount called “Fees”.

I don’t quite understand this. If i’m not mistaken, when you buy a house or a condo, it goes something like this:

Let’s say the home costs $ 150,000. You pay a down payment of $ 30,000 to start off with, and you take out a fixed rate mortgage loan of $ 120,000. All you would have to pay from that point on would be the monthly mortgage amount plus the maintenance of the home. So where do “Fees” come in? Is it possible to get a mortgage loan without fees?
Ok I see. So those fees are one-time only fees that you pay when you *first* obtain the mortgage, am I correct?

2 Thoughts on What’s difference between mortgage fees and your actual mortgage?
  1. Reply
    Equality
    October 30, 2012 at 7:54 am

    The fees are what you pay for obtaining the mortgage. Application fees, background checks and so on.
    A company is not going to expend 50 hours on your qualifications and not get paid.
    No your monthly cost is Principle, interest, property taxes, homeowner’s insurance plus maintenance fees

  2. Reply
    glenn
    October 30, 2012 at 8:32 am

    I am guessing that web site is talking about HOA fees. But you also have property taxes and homeowners insurance that is paid each month into an escrow account- or which you as a homeowner pay each year when due- depending on which arrangement you have with your mortgage.

    Big warning. I would not get a mortgage over the internet with anyone- especially the large banks.

    Find a local experienced competent loan officer that you can also email- but you can knock on their door if needed. It will help a lot at that last minute when an issue comes up!

    Leave a reply

    Register New Account
    Reset Password