Fees

The Loan Origination fee, read bank fee, is usually 1 point or ½ a point and is normally expressed as a percentage of the loan amount just as points are expressed.  If the loan origination fee is expressed as a % of the loan, it is easiest to add the loan origination fee to points in the True Mortgage Value Calculation, otherwise, add the loan origination fee with the other fees.  The Settlement fees are fees for the application, inspection, and property appraisal.  You must receive a good faith estimate of each expected fee at the time of application or within three days of application as required under RESPA, Real Estate Settlement Procedures Act.  Almost all lenders don't charge an application fee and fees are paid only if the loan closes.  

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