Processing Fees:

Most lenders, mortgage brokers, banks and credit unions will charge a fee when you request a mortgage.

Here are some of the fees you can expect and should discuss with your lender:

• Loan origination fee
• Processing fee
• Underwriting fee
• Appraisal fee
• Property inspection fee
• Title search and insurance fees
• Surveyor fee
• Transfer tax and recording fees
• Realtor fees, Mortgage broker fees, Private lender fees
• Adjustment charges for property taxes, any rental equipment, and insurance on the property at time of closing.

FHA Fees:

If you have a FHA mortgage you will have an upfront fee charged at the time of closing and a continuous annual mortgage insurance premium which will be spread out in your monthly payments.

FHA fees stay with the loan unless you change the type of loan or close it.

PMI Fees:

Private Mortgage Insurance is fee incorporated into your mortgage payment to cover the insurance needed since you put down a low down payment when you purchased your home.  To avoid this cost, you will need to put down 20% of the home’s purchase price as the deposit when you close.

Taxation:

In most states you can easily sell your home and discharge the mortgage without penalties, however if you have made money on your home sale you will be subject to capital gains tax.  Generally, the first $250,000 of capital gain on your primary residence is clear from taxation, but any amount over this $250,000 will needed to be added to your overall taxable income in the year that you sell your home.