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PostHeaderIcon Mortgage Paid, Escrow Mortgage & Mortgage Closing Costs

Mortgage paid is when a client has paid off the home mortgage loan. A mortgage is promises to a bank or lender that the loan taken out for the property, which is secured debt that will be paid back. Mortgage payment comes every month with a certain interest rate, which is deicide at the time of taken the loan out or when a refinance is done. When the mortgage is paid that mean the borrower now own the property and does not have to make a payment anymore. Another way to pay off the mortgage is by either sending in a little bit extra money a month or getting on a bimonthly payment schedule. A bimonthly means that you will be sending one extra payment towards you mortgage a year.

Escrow mortgage is when a borrower wants to have the taxes and insurance include in the monthly payment. To have this included in the payment the lender or bank sets up an escrow account. An escrow account is an account that is held in the clients name for things like property taxes and insurance premium. With this account when a refinance is done the company or bank holds the pervious taxes and a little bit just incase the taxes increase. An escrow account is a good idea because it will be one less thing that a borrower has to worry about.

Mortgage closing costs are when the fees that a borrower has when they either purchase a home or get financing or when the borrower does a refinance. The most common closing cost is called points. A point is a good way for a borrower to reduce the interest rate and this point can be tax deductible. Purchase points can also be known a buy down points or discount points this is the point that you pay to the lender to buy down to a lower rate. . Lender fees consist of origination, points, application, credit report and appraisal. Third party fees consist of company closing costs, title, and title insurance. Pre-paid items are not really considered to be closing costs, these are items you pay regardless of refinancing or not. These fees are broken down again by recurring fees and non recurring fees. Recurring fees are your monthly payments, your taxes and insurance. Non-recurring fees are points, lender fees, and application fees. The closing costs can also be rolled into the loan so that the borrower does not have to come to the closing with any money out of pocket.

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