Understanding the standardized CFPB Loan Estimate allows homeowners to identify junk fees and negotiate lender credits during the remortgage process.
1. Itemized Closing Fee Categories
- Section A: Origination Charges ($1,000–$2,500): Lender underwriting fees, application processing, and optional discount points to buy down note rate.
- Section B: Services Borrower Cannot Shop For ($600–$1,200): Licensed real estate appraisal, credit report pulls, flood zone determination, and tax monitoring.
- Section C: Services Borrower Can Shop For ($1,200–$2,500): Lender's title insurance policy, title search, settlement closing fee, and notary services.
- Section F & G: Prepaids & Escrow Reserves: Prepaid daily interest from closing to month-end, homeowners insurance premium, and property tax reserves.