Mortgage fees are fees charged by a lender for closing a home loan. These fees are required to be disclosed on the Good Faith Estimate and will appear on the loan closing statement.

Lenders charge a variety of fees and some may go by different names. Here are some fees that are typical in a home loan transaction:

  • Appraisal fee – paid to the appraiser who determines the value of the home on behalf of the bank.
  • Origination fee – The cost paid for the lender to originate your loan. Often this is 1% of the loan amount.
  • Processing/Underwriting fee – Fees paid for the lender to review and approve the loan application.
  • Flood certification fee – A fee paid to a company who certifies that a home is or is not in a known flood plain.
  • Tax service fee – A fee paid to a company who ensures that property tax bills are sent to the lender for payment.