Closing Costs

Closing costs can vary greatly and can be confusing to compare. At First Portland Mortgage we invite you to look at our rates and fees and compare them to other lenders. We believe that we have the lowest rates in Maine and New Hampshire and we encourage you to find out for yourself.

Be careful! Other Lenders or Brokers often subsidize their rates by charging high fees. They might say 0 points, but hide the points by calling them other names such as Lock-in-fee, Origination fee, Broker fee, etc. You don’t usually find out about these other fees until after you’ve applied. Don’t be fooled! Ask for a written Good Faith Estimate specific to your transaction before applying.

YSP (Yield Spread Premium) A yield spread premium is an amout of money a Broker or Lender earns when they sell a loan on the secondary market.  This allows you as a consumer to spend less at closing and get a lower rate.  Although Lenders don't have to disclose this amount to you, Mortgage Brokers do.  As a consumer it doesn't affect you as long as you compare the rates and fees of each offer and choose the best deal.

The key to getting the lowest closing costs is to break down the closing costs into three separate categories of charges. Use the following information to estimate fees for your own mortgage.

1. LENDERS FEES
2. TITLE COMPANY FEES
3. PREPAID ITEMS
   

1.      LENDER FEES: These are the closing costs that are paid to the Mortgage Lender. These fees vary widely from one lender to another and can affect rates dramatically. Lenders often advertise low rates but have high costs associated with lender fees, Be sure to check when shopping.

Below are the Fees charged by First Portland Mortgage, remember we have NO HIDDEN FEES! Other Lenders often charge Origination fees! The fees below may be reduced or eliminated by accepting a slightly higher rate. Call First Portland Mortgage at 1-800-370-5222 for details.

• Appraisal Fee- $50.00-$350.00 Appraisals are done by independent appraisers but are ordered by the mortgage company. Although costs of appraisals vary depending on state and county, First Portland Mortgage has negotiated some of the lowest appraisal fees in Maine and New Hampshire. Call us a 1-800-370-5222 for the most accurate quote for an appraisal in your area.
• Credit Report- $20.00
• Misc. Lender Charges- Underwriting / Administration Fee- $585.00 - $695.00 These charges are often itemized by other lenders as Underwriting Fee, Processing Fee, Origination Fee, Broker Fee, Loan Submission Fee, Lock-in Fee, etc. At First Portland Mortgage we have only one fee.
• Flood Certification Fee- $11.00 to $18.00

2.      TITLE COMPANY FEES: These fees are not controlled by the lender. The title exam is performed by a separate company that you the consumer has the right to choose. Title company fees vary greatly. First Portland Mortgage has negotiated some of the lowest closing and title exam Fees. Suggestion: If you are refinancing you may use the same title company that searched your title on your initial mortgage. They will often give you a discount. You could save as much as 40% on title insurance.

The fees paid to the Title Company for closing a Maine property include the following. (New Hampshire properties may be slightly different).

Estimated Costs:

• Attorney’s Closing Fee-$300.00 (Must be performed by our closing attorney)
• Title Search-$125.00 (refinance) $200.00 (purchase) May be performed by your attorney
• Title Insurance-$1.75 per $1000.00 borrowed +$50.00
• Survey Affidavit-$50.00 For an additional fee, you may choose to have a plot plan or survey performed.
• Recording Fees-$68.00+
• Transfer Tax (purchases only)-$2.20 per $1000.00 of purchase price
• Courier Fees-$0 (purchase) $25.00 for refinance (depending on number of overnight payoffs

3.      PREPAID ITEMS
Borrowers are required to prepay the following and put taxes and insurance in escrow. In Maine, escrow accounts pay interest. These items are industry standard practices and do not vary between lenders.

• Interim (pre-paid) interest varies depending on the day of the month you close
• Six months to one year homeowners insurance policy paid at closing
• Real Estate Taxes due within 60 days must be paid in full
• Two months real estate tax and homeowners insurance escrow
  

Special Note: While most borrowers enjoy the convenience of having taxes and insurance escrowed each month, those who desire to maintain their own escrow accounts can do so by exception (primary residence only) if there is at least 20% equity in the property. Call for details.