ARIZONA REFINANCE AND MORTGAGE CLOSING COSTS

 When completing an Arizona refinance or purchase transaction, closing costs might be as high as 5% of the loan amount. Here is a breakdown of potential fees:

Appraisal- This could be the only out of pocket expense that you as the borrower will have to pay. A lender will typically have a third party inspect the property and pull comparables to derive a property value. 99% of the time this will be required for an Arizona refinance transaction and usually costs between $300-400.

Processing- Arizona mortgage companies will charge this fee to process your file. The fee typically ranges between $500-950.

Underwriting- The lenders will charge this fee to evaluate the file for a loan approval. Underwriting fees range between $600-1200.

Discount points- Arizona mortgage companies will charge discount points to buy down your loan rate. Usually this is an attractive option if the borrower is planning on keeping the loan for more than 3-5 years.

Origination- The origination fee is charged by the Arizona mortgage companies and can range between 1-5%. This fee is paid directly to the mortgage company.

Recording- This fee pays for the deed recording and goes to the county. Usually, this loan fee is around $150.

Settlement- Charged by the settlement companies for the loan closing and is roughly $200-300.

Title- Usually less than one percent of the loan amount, this protects the lender and is charged to the borrower.

Prepaid escrow- This fee covers 6-12 months of taxes and insurance. It only applies and is charged to the borrower when the lender is incorporating the taxes and insurance into the monthly payment. The prepaids are not collected when the borrower elects to pay the taxes and insurance separately.

Attorney fee/Notary fee- Usually costs $200-300 and applies when an attorney or notary are involved in the transaction.

Prepaid interest- The lender will collect daily interest on the new loan once the transaction is complete. The amount of days collected will include the day after the loan funding, thru the end of that particular calendar month. The amount collected is based on the loan note rate and payment.

These are not all of the possible fees to be collected when refinancing or purchasing, but do cover the majority of potential fees. As stated previously, these fees totaled up tend to range between 3-5% of the total loan amount