Since you are not paying any closing costs, we can keep your loan balance exactly the same if you wish. We have no upfront fees at all (no appraisal or application fee) However, the borrower is responsible for 2 items.

• Pre-paid interest - This is interest from the date the loan closes until the end of the month. This interest charge takes the place of the first month's mortgage payment. For example, if your loan closes on March 20, you would be charged for 11 days worth of pre-paid interest and your first mortgage payment would be May 1 (you skip the April payment). The purpose of pre-paid interest is to bring you up to speed with the bank's monthly cycle of collecting payments on the first of each month. Pre-paid interest can be rolled into the loan amount if the client wishes. 
   
• Escrows - The client is responsible for funding an escrow account with the new lender for the purpose of having the lender pay the property tax and homeowner's insurance bills when they come due. The amount escrowed depends on what part of the payment cycle you close in...it can be as few as 2 months or as many as 12 months. In the case of a refinance, you will receive a check for a similar amount from your old lender within 30 days of closing for the balance of your escrow account with them. Escrows can be rolled into the loan amount if the client wishes to avoid having to wait for the check to come back from their existing lender.