Budget for Closing Costs ? Loan Origination Fees a

Once you reach an agreement on the purchase of a home, things start moving quickly. In the chaos, it is important to remember to budget for closing costs.

Budget for Closing Costs ? Loan Origination Fees and PMI

Closing costs are fees associated with miscellaneous events associated with a home purchase, things such as property inspections. Even if you are purchasing a home for the first time, you are probably aware there are closing costs that have to be paid. Rarely, however, are you aware of just home much and how fast the can accumulate. If you have not budgeted for them, they can put a kink in the closing or even cause you to lose the home.

A couple of closing costs to keep in mind are origination fees for home loans and private mortgage insurance. The mortgage related costs are only a small part of the overall closing costs you can face, but deserve a closer look.

Origination fees for home loans can be a shock to first time buyers. Few realize they are going to have to pay such things. Origination fees are costs charged by a lender for services used to determine if the lender should give you a loan in the first place. For example, a lender will charge you fees for obtaining a copy of your credit report, having an appraisal done for the property. Infuriatingly, the lender will also charge you fees for processing the loan and preparing the loan documents. You may also have to pay points, which represent a percentage of the total loan, often one or two percent. On a $300,000 loan, the origination fees can quickly add up to thousands of dollars.

Private mortgage insurance, often called PMI, can also be a nasty little surprise. The magic number when considering PMI is 20 percent. If you make a down payment on the home that is less than this amount, you are almost certainly going to have to pay PMI. PMI is simply insurance that protects the lender should you default on the loan. The cost can add up to hundreds of dollars, so make sure you know what is expected of you.

Closing costs are aggravating, particularly when you feel like you are being nickel and dimed to death. Budget for them up front, and you will feel less aggravation.

Posted by Michael Barrick on February 16, 2009 at 09:31 AM

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Michael Barrick is affliated with Philadelphia Commercial Development Corporation, which is located in Philadelphia, PA. For further assistance please use the contact information located on the right.

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Local Information for Philadelphia, PA

Latitude: 39.998012 -- Longitude: -75.144793

ZIP Codes for Philadelphia, Pennsylvania	19019 19059 19092 19093 19099 19101 19102 19103 19104 19105 19106 19107 19108 19109 19110 19111 19112 19113 19114 19115 19116 19118 19119 19120 19121 19122 19123 19124 19125 19126 19127 19128 19129 19130 19131 19132 19133 19134 19135 19136 19137 19138 19139 19140 19141 19142 19143 19144 19145 19146 19147 19148 19149 19150 19151 19152 19153 19154 19155 19160 19161 19162 19170 19171 19172 19173 19175 19176 19177 19178 19179 19181 19182 19183 19184 19185 19187 19188 19191 19192 19193 19194 19195 19196 19197 19244 19255
Area Code for Philadelphia, Pennsylvania	215
Time zone for Philadelphia, Pennsylvania	EST

Other Area Cities: Camden, NJ Villanova, PA Philadelphia, PA Blue Bell, PA Chester, PA Darby, PA Folcroft, PA Glenolden, PA Lansdowne, PA Cheltenham, PA Haverford, PA Newtown Square, PA Narberth, PA Drexel Hill, PA Ridley Park, PA Springfield, PA Swarthmore, PA Upper Darby, PA Yeadon, PA Prospect Park, PA Conshohocken, PA Haddonfield, NJ Moorestown, NJ Pennsauken, NJ Woodbury Heights, NJ

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The city of Philadelphia is the largest city in Pennsylvania and the fifth most populous city in the United States. It is the county seat of Philadelphia County. It is colloquially referred to as The City of Brotherly Love (from Greek: F??ad??fe?a, /fi.la.'d?l.f?j.a/, "brotherly love" from philos "love" and adelphos "brother"). In 2005 the United States Census Bureau estimated the population of the city proper to be 1.4 million. Philadelphia is a major commercial, educational, and cultural center for the nation. The Philadelphia–Camden–Wilmington metropolitan area is the fifth-largest in the U.S. as of the 2006 estimate with a population of 5.8 million (fourth largest according to official 2000 census). In the 18th century, the city was the first capital and most populous city of the United States. At that time, it eclipsed Boston and New York City in political and social importance, with Benjamin Franklin taking a large role in Philadelphia's rise. -- Source: Wikipedia.com

Pennsylvania 2000 Census Population Profile Map

	Philadelphia	Pennsylvania	United States
Population	1,517,550	12,281,054	281,421,906
Median age	34.2	38	35.3
Median age for Male	32.1	36.5	34
Median age for Female	36	39.4	36.5
Households	590,071	4,777,003	105,480,101
Household population	1,462,819	11,847,753	273,643,273
Average household size	2.48	2.48	2.59
Families	352,331	3,208,388	71,787,347
Average family size	3.22	3.04	3.14
Housing units	661,958	5,249,750	115,904,641
Occupied units	590,071	4,777,003	105,480,101
Vacant units	71,887	472,747	10,424,540

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Budget for Closing Costs ? Loan Origination Fees a

Local Information for Philadelphia, PA

Latitude: 39.998012 -- Longitude: -75.144793

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