Guide to Closing Costs

The following is a guide of estimated closing costs you may incur during the loan process. Not all costs are for every loan, and not all states have uniform costs. Please make your loan representative aware of the state in which the property is located.

At Patriot, Your Application Fee Is Really A Deposit Toward Closing Costs

• $399 Processing Fee
• $75 Application Fee
• $465 Adminstration Fee (Investor Costs)

At commitment, or when your loan is approved by Patriot Funding, we ask for a commitment deposit that is 1% of the loan amount unless your loan officer collects a 1% rate lock fee at application. Both the commitment deposit and rate lock fee are your money, not ours, and will be fully-refunded to you if your loan is denied. Whichever deposit is paid becomes a credit toward closing costs and sits in escrow until then.

Conveyancing Attorneys/Settlement Agents

Mortgage companies have a list of reputable closing attorneys and settlement agents who can provide you with a hassle-free closing. It is your right to choose the agent who represents the lender; however, it is wise to take the recommendation of the loan officer who has a relationship with a specific agent, because many times it will result in lower fees and a smoother closing.

If you require or desire borrower representation, the lender's attorney will offer its services at an additional cost. Otherwise you may enlist the services of another attorney. In any case, it will facilitate the process if the attorney has experience in and knowledge of real estate law and conveyancing procedures.

The attorney/settlement fees are paid by you at the closing and will appear on your GFE (Good Faith Estimate) during application and finalized on the HUD-1 Settlement Statement (the form provided to you by the conveyancing attorney a few days before your closing is scheduled.)

When refinancing, you can streamline the process by using the same attorney who closed your previous mortgage. Many times it can save you money by providing their office with your old title policy.

The following is an example of typical Massachusetts Conveyancing Costs:

Title Insurance (Based on Amount borrowed)	$2.50 per $1000
Attorney Fee/Settlement Fee	$450.00
Title Search	$150.00
Survey/Plot Plan	$150.00
Recording Fees	$425.00
Flood Certification	$18.50

Escrows/Prepaid Costs

Escrows are monies paid by you at closing to establish accounts for real estate taxes, hazard insurance (also known as homeowners insurance) and private mortgage insurance (PMI) if applicable. The escrow account requirement may be waived on some occassions by adding an extra $fee to the closing costs or adding extra .25 point to the interest rate.

Real Estate Taxes 2 months (depending upon payment schedule of the municipality/town)
Hazard Insurance 2 months (plus the one year premium upfront under prepaids)
PMI 2 months (if applicable as monthly and not one-time fee).

The prepaids are for one year of your hazard insurance paid upfront and daily interest (prepaid interest) of your loan. Prepaid interest is best explained as such: When you rent you pay on the 1st of the month for that month; with a mortgage you pay in arrears on the 1st of the month for living there the previous month. Hence, if you close on the 20th of February, you must prepay to the 28th the eight days of daily interest. Example: 30 year fixed rate $100,000 loan @ 7.0% interest rate is calculated as:

$100,000 loan x 7% ÷ 365 days per year = $19.17 daily interest x eight days = $153.42 prepaid interest total

Prepaid Interest	Number of days to the last day of the month (see above)
Hazard Insurance	One year premium upfront in addition to 2 months escrow
PMI	(One-time upfront fee if applicable)

THESE ARE PATRIOT FUNDING'S CLOSING COSTS AND PREPAIDS PLAIN & SIMPLE!