Closing Costs

There are certain standard costs associated with getting a new loan. 

As an Upfront Mortgage Banker, I will walk you through all the closing costs, both Non-Recurring and Recurring.

Non-Recurring Closing Costs

Non-Recurring Closing Costs are those costs that you only incur once when you get a new loan.  They can be broken down as follows:

1.  The Loan Origination Fee.

If you would like to receive the Wholesale Rate, you can choose to pay a Loan Origination Fee.  That becomes the compensation to me as your mortgage banker.  Here is the link showing you my fee schedule. This is purely optional.  Alternatively, you can choose a slightly higher interest rate, known as the "Retail Rate," so that my compensation comes from the lender.  This is known as the "Yield Spread Premium," "Service Release Premium," or "Rebate."  Since my compensation is fixed, it does not matter to me which rate you choose.  My job is to help you do what is best for you.

Having said that, most people choose to pay a Loan Origination Fee (LOF) because they save money over time by enjoying the lower, wholesale rate for many years. 

2. Other Non-Recurring Closing Costs (NRCCs)

Here is a list of the most significant NRCCs for any loan.  These are standard and necessary closing costs that are paid to 3rd parties, like the lender and the title company. These costs are paid out of escrow to the companies who perform loan related services. 

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