Closing Costs Explained:

Origination Fees & Discount Points
The origination fee is charged for the lender's work in evaluating and
preparing your mortgage loan. Discount points are a fee you can pay to
"buy" a lower interest rate – the more points paid, the lower the
rate. One point equals one percent of the loan amount. For example,
one point on a $300,000 loan would be $3,000. In some cases -
especially with refinances – you can add the points to your loan
amount, thus not having to pay points out of your pocket.

Appraisal Fee
This fee pays for an independent appraisal of the property you want to
purchase/ refinance. Capital Banker requires this opinion or estimate
of the market value of the subject property for the loan.

Credit Report:
A credit score number is often called a FICO score. The score distills
all of the information in your credit report, using a formula to
calculate a single number that indicates your credit worthiness.

Underwriting and Documents Fees
Lenders must underwrite your file in order to see if it meets their
lending requirements and the requirements of the companies who
ultimately purchase loans for investment purposes.  They then must
produce a viable set of loan documents meeting strict Federal and
State laws.

Processing Fee
This fee is for setting up your file, all internal work and for
procuring all documentation required to make your loan viable for the
lender criteria, and for following up to be sure your loan funds at
the proper loan amount, fees and closing date.

Title and Escrow fees
These fees may vary by jurisdiction; often includes the cost of title
insurance or title search and attorney's title opinion; may cover
premiums for Capital Banker's policy (insuring that its mortgage is a
first lien on the property) and a separate policy insuring the buyer's
title.

Transfer Tax
Transfer taxes are state and local taxes that are assessed on real
property when ownership of the property is transferred between
parties. Documentary stamps are purchased covering such charges and
are place on the deed.

Property Survey
The surveyor determines whether the subject property is within the
property borders, whether there are any encroachments on the property
by neighbors and the extent to which any easements on the property may
affect legal title.

Prepaid Interest
The interest on your loan calculated on a per day basis and paid in
advance from the day of your loan closing through the last day of the
month in which your closing takes place. This enables Capital Banker
to make payments for your loan due on the 1st of the month.

Insurance: Property Owners & Hazard
A form or protection against physical damage to the subject property
by fire, wind, vandalism and other causes. Capital Banker will expect
you to have a policy in effect at closing.