Mortgage my home secrets banks don’t want revealed

Decoding Mortgage Fees

Beyond the interest rate, various fees can add up quickly. These include origination fees, appraisal fees, and closing costs. Origination fees cover the lender's administrative costs, while appraisal fees pay for the property's valuation. Closing costs can range from 2% to 5% of the loan amount and cover various expenses like title insurance and attorney fees. By shopping around and comparing lenders, you can potentially negotiate lower fees and save significantly².

Private Mortgage Insurance (PMI)

If your down payment is less than 20% of the home's purchase price, lenders typically require private mortgage insurance (PMI). PMI protects the lender in case of default but adds to your monthly expenses. However, once you've built up enough equity, you can request to cancel PMI, reducing your monthly payments. According to Freddie Mac, PMI can increase your monthly payment by $30 to $70 for every $100,000 borrowed³.