In mortgage loans closing costs are made up of all of the following Except:
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A. B. C. D.B
The correct answer is B. Loan application and origination fees paid to the borrower.
Closing costs are the expenses that the borrower incurs when completing a real estate transaction, such as buying or refinancing a home. These costs are typically paid at the closing, and they include various fees and charges related to the mortgage loan and the transfer of property ownership.
Here's a brief explanation of each of the answer choices:
A. Loan application and origination fees paid to the lender - These fees are charged by the lender to cover the cost of processing the loan application and originating the mortgage. They may include charges for things like credit checks, appraisals, and underwriting.
B. Loan application and origination fees paid to the borrower - This answer choice is incorrect because borrowers do not typically pay themselves loan application and origination fees. These fees are paid to the lender.
C. Mortgage points - Points are a form of prepaid interest that borrowers can choose to pay upfront in exchange for a lower interest rate on the loan. Each point typically costs 1% of the total loan amount.
D. Title search - A title search is a review of public records to ensure that the seller has the legal right to sell the property and that there are no liens or other claims against the property. This is typically done by a title company or attorney, and the cost is usually paid by the buyer.
In summary, the correct answer is B. Loan application and origination fees are paid to the lender, not the borrower, and are a common component of closing costs. Mortgage points and title searches are also typically included in closing costs.