Why am I charged a partial month of interest when my mortgage closes?
Why am I charged a full month of interest when my refinancing closes?
Why do I need owner’s title insurance?
I am selling my home, why do I need to purchase title insurance for the buyer?
What is MERS and why am I charged a MERS fee?
MERS is short for Mortgage Electronic Registration Systems. MERS is an electronic national database that tracks changes with registered mortgages. It serves as a common link between the lender and the homeowner. The system receives service of process, legal notices and other mail regarding the mortgaged property. It tracks servicing rights and ownership of mortgages. The MERS fee is typically considered to be one of the costs associated with the sale of the home.
Why am I being charged a flood certificate fee when the home I am taking a mortgage out on is not located on a floodplain?
The determination is based on the structure’s physical address and may not reflect how your property is shown on the effective Flood Insurance Rate Map (FIRM). Lenders are required to check whether a home is in a floodplain. If there has been updates to the FIRM a home that was not considered to be in a floodplain may now show that it is.
Why does the lender charge an underwriting fee?
This covers the application processing your home loan. It usually includes the cost of credit checks, and administrative expenses.
What is mortgage underwriting?
This is the process where your level or risk is determined to find out if the terms of the loan will be acceptable. The underwriter also verifies your documentation and finances in order to insure that you will be able to meet the loan repayment requirements. Many look at capacity (do you have the means to pay off the debt), credit (do you have a solid credit and repayment history), and collateral (what is the home worth).
What does “loss payee clause” mean?
It means that in case there is a loss the insurance that is paid out goes to the lender that currently holds the title.