Know the numbers

Here’s what to expect when budgeting for your loan:

• Credit Report: Under $50; ordered by lender with your permission
• Application Fee: A few hundred dollars; may be refunded at closing
• APR (Annual Percentage Rate): Reflects full borrowing cost—includes rate + fees
• Index: Variable loans adjust based on benchmarks (like Treasury Bills or Fed Funds Rate)
• Points: Optional upfront fee to reduce interest rate (typically 0.25%–2% of loan)
• Appraisal: $400–$800 depending on property and location
• Miscellaneous Fees: Notary, courier, recording fees, etc.
• Prepayment Penalty: Not common, but always ask—especially for ARMs