Settlement costs  There are so many different charges involved in buying a home or refinancing your existing home, it is important to know what to expect at the settlement. Below is a brief breakdown of those fees and what you can expect to pay when using 1st Mortgages as your lender.

Closing Costs: This includes lender fees and points, as well as a host of other charges involved in obtaining and processing your loan. Points are an upfront charge expressed as a percent of the loan amount (e.g., 1 point is 1 percent of the loan) to increase the lender's effective yield on a loan.

Specific lender fees can include:

Loan Origination Fee. This is a charge for your lender's work in evaluating and preparing your mortgage loan. This fee is optional and your loan officer will discuss the positives and negatives of potentially paying this fee.

Credit Report This is usually a nominal fee associated with doing a quick credit check to evaluate your qualifications.

Appraisal Fee Your lender will need an opinion from an independent appraiser of the market value of the home you wish to purchase or refinance.

Administration or Underwriting Fee This fee will vary based on the lender or investor that is chosen to underwrite and fund your loan. Again this choice is yours to make, and your loan officer will present the options to you to allow for an informed decision

Mortgage Insurance A lender may require this type of insurance for buyers who make a down payment of less than 20 percent of the value of the house. The policy covers the lender's risk in the event the buyer fails to make the loan payments. Premiums are typically paid annually from an escrow or reserve account, or in a lump sum at closing.

Title Insurance These fees are charged by a chosen title insurance company to allow for the release of any existing liens and the subsequent securitzation of a new lien against the home you are buying or refinancing.

Pre-Paid Expenses or Escrows These amounts on your Good Faith Estimate represent the collection, in advance, of future payments to your chosen Homeowner's Insurance provider and/or the county assessor for the county in which you will reside. These amounts are soley dependant on whom you've chosen for insurance and the county's assesd value of your home. These are paid at closing and as part of your monthly payment to make sure that the balance in your escrow account is sufficient to pay these amounts when they become due.

Homeowner's Insurance Insurance that protects property against loss caused by fire, some natural causes, vandalism, etc., depending on the terms of the policy. Also includes coverage such as personal liability and theft away from home. Your lender will expect you to have a policy in effect by closing.

Property Taxes Paid to the county in which you live and collected at closing and as part of your monthly payment.