Loan-Related Closing Costs

It is important to bear in mind that rate and closing costs go hand in hand.  Most any rate is available to you, as the lower the rate - the greater the closing costs.  The 'market rate's is defined as the interest rate in which you are paying the more traditional set of closing costs (totaling approx $2,700).  In selecting a slightly higher interest rate than the market rate, the end lender incentivizes you with credits (as a percentage of the loan amount) which can be utilized to offset a portion/ALL of these closing costs.  As a small sized mortgage brokerage firm, I am uniquely positioned to be able to offer low cost/NO cost rate offerings.  

The following is meant to provide an overview of the more standard closing costs under a WI residential mortgage transaction, as unique situations may present additional fees.

Lender Fees
The end lender will have administration/underwriting fees which covers these applicable expenses.  These lender fees can range from $1,195 to $1,395.

Appraisal Report Fee
This is the fee for having the house appraised/valued.  The appraiser will typically complete an interior/exterior inspection under completion of appraisal report.  A single-family/condominium appraisal fee can range from $550 - $625.  A multi-family (2-4 units) appraisal fee can range from $675 - $775.

Credit Report Fee
A credit report, generated from all three credit repositories, is considered to determine your creditworthiness under the pre-approval/loan process. This fee is approx $105.

Title Insurance Fee
A title search is completed to confirm the liens affixed to the financed property.  While the seller is often responsible for issuance of the owner's policy, as drafted per Offer, the buyer is responsible for the simultaneous mortgagee policy (approx $500) and closing fee (approx $325).  This fee structure is the same for refinance transactions at less than/equal to $500K in loan amount, as title cost increases for loan amounts in excess of $500K ($1 in title premium per additional $1K borrowed).  As I have local vendor relationships, I can commit to having the most attractive title pricing in the marketplace (out of State lenders typically have much greater title expenses).

Recording Fees
On a purchase transaction, both the deed AND the mortgage are recorded at the property's local register of deeds.  The deed and mortgage are recorded at an approx cost of $68 on a purchase transaction, $34 under a refinance transaction (given NO recorded deed is required). 

Points (OPTIONAL)
You have an option to pay points to lower the interest rate at which the loan will be repaid.  Each point equals 1 percent of the mortgage amount. For example: on a $250,000 loan, 1 point would equal $2,500.  We can discuss this rate/cost relationship in greater detail.