Refinance Charges

[JenMO]

Client refinanced home. Loan origination is fee is not percentage, looks like set amount. There is a loan discount fee of .875%, an appraisal fee, appraisial services, closing fees, title search fee, title insurance, recording . All adds up to over $3000. Loan discount fee is deductible as mortg interest? What about orig fee? It isn't listed as a percentage of the loan. Rest of the fees just add to the cost of the home, correct?

[ChEAr$]

You've got the gist of it.

Client refinanced home. Loan origination is fee is not percentage, looks like set amount. There is a loan discount fee of .875%, an appraisal fee, appraisial services, closing fees, title search fee, title insurance, recording . All adds up to over $3000. Loan discount fee is deductible as mortg interest? What about orig fee? It isn't listed as a percentage of the loan. Rest of the fees just add to the cost of the home, correct?

But rest of mortgage fees pertain to the loan and not the basis of the house.

[S T]

Refi

I don't think loan discount is mortgage interest, I think it is still considered points? Usually a % of the loan amount, Orig fee is also % of loan amount which is also similar to points.

I have never understood why some loan brokers break down the amount so much into so many categories, but usually you can apply a % of the loan and arrive at the amount that is being charged.

Appraisal, escrow, title, etc are cost of the loan.

See TTB 6-2 for settlement cost chart.

Sandy