Resources - Mortgages

When the buyer secures a new loan to finance the purchase of a new home. The fee is usually paid by the purchaser at the time the transaction closes, withheld from escrow. If the buyer assumes the seller's existing financing, the buyer may pay an assumption fee, usually equal to one or two percent of the loan amount. Also, under the terms of some mortgage loans, the seller may be required to pay a prepayment charge or penalty for paying off the mortgage loan before the loan due date.