Are there closing costs or other fees for a mortgage?

Yes. Getting a new mortgage loan usually involves closing costs and other fees, separate from your down payment. Common costs include:

• Origination fees you can pay to obtain a lower interest rate
• Appraisal fees to pay for an independent valuation of the property
• Credit report and verification fees
• Title Company services and title insurance fees
• Recording and government fees
• Prepaid interest to pay for any loan interest from closing through the end of the month
• If applicable, initial escrow deposits placed in escrow for property taxes and homeowner’s insurance
• If applicable, supplemental purchase property taxes

For a purchase loan, you’ll need to pay these fees before your loan can fund. For a refinance loan and if you have existing equity in your home, you may be able to include the closing costs in your loan amount.