Field Name

Definition/Description

Mortgage Origination

Amount charged by the lender for evaluating/preparing the loan, expressed as a percentage or dollar amount.

Mortgage Discount Points

A one-time charge to reduce the interest rate paid over the life of the loan.

Appraisal

Fee paid to determine the value of the home.

Credit Report

Fee paid to run a credit report for the buyers.

Mortgage Insurance

Insurance used by the lender, usually on the first 20% of the mortgage, to protect the lender in case of default by owner. Also used to protect the lender and encourage lending of loans in excess of 80% LTV. Both private companies and government entities offer the lender this insurance on the first 20% of the mortgage.

Document Preparation

Fee paid to prepare all of the documentation for the purchase.

Underwriting

Fee charged by the underwriter to determine how much the buyer can afford.

Flood Certification

Fee charged to determine whether or not the property is in a flood zone.

Tax Escrow Service

Fee charged by the lender for managing the escrow account and reporting and adjusting monthly escrow amounts.

Courier

Fee charged to send closing documents, including the mortgage payoff check, usually overnight to satisfy the existing mortgage and remove the lender's lien on the property.

Wire

The borrowed funds are usually wired to the Settlement agent’s account. A fee may be charged for the wire transfer of these funds.

Escrow Waiver

Fee charged if the borrower does not want taxes and insurance escrowed by the lender. Most lenders do not require taxes and insurance to be escrowed as part of the monthly mortgage payment if the LTV is less than 80%. Many do, however, charge a fee if the borrower does not want taxes and insurance escrowed by the lender.  The fee is usually 0.125 to 0.25% of the mortgage amount.

Interest to End of Month (XX Days)

Interest owed for the remainder of the month based on the day of closing.