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E Ex xp pl la an na at ti io on n o of f E Es st ti im ma at te ed d C Co os st ts s ( (c co on nt ti in nu ue e) )

PMI/MGIC PREMIUM: Mortgage insurance premium paid to a private mortgage insurer such as
Mortgage Guarantee Insurance Corporation to insure the loan. Usually an
annual premium paid in advance and impounded monthly.

PREPAYMENT PENALTY: A penalty charge in a Note, Mortgage or Deed of Trust, imposed when the
loan is paid prior to the due date. Amounts very, check with your lender.

IMPOUND ACCOUNT: An account held by the lender to pay future taxes, insurance and assessments.
The monthly payment to a lender will include an amount
to be paid into this account. This account is usually transferred and
charged to a purchaser, if the loan is assumed.

ASSUMPTION FEE: Paid to the lender for transferring an existing loan into a new purchaser’s
name. Fee is usually split equally between seller and purchaser.

FHA/MIP: Fees charged to insure FHA loans. A portion is paid up front or financed and
a small portion is paid monthly. Depending upon down payment the amounts
vary. Check with your lender.

PREPAID INTEREST: Lender will require prepaid interest from the day of funding the new loan to
the first day of the following month. (Estimate 30 days).

TAX PRORATION: Taxes are assessed on a calendar year basis. The seller credits the purchaser
through escrow, the seller’s share of taxes from the date to which taxes were
last paid to the close of escrow. The purchaser then pays the total bill at the
time the bill becomes available for payment.

ADJUSTED INTEREST: When payment is made, the interest portion of the payment covers the
interest that has accrued since the last payment due date. As an example, if a
payment is monthly, the July 1 payment covers interest from June 1 through
st
June 30. If the escrow closes during July, the seller will be charged interest
from July 1 to the close of escrow.

RECONVEYANCE FEE: Fee charged by the Trustee in a Deed of Trust for issuance of a Deed of
Release and Full Reconveyance. Usually a $60.00 charge to the seller which
includes Reconveyance fee and recording fee.
MISCELLAEOUS FEES:
ACCOUNT SERVICING FEE: Fee paid to the servicing agent for processing payments on a deferred balance
between a seller and purchaser. Fee will be based on the number of checks
that the servicing agent must issue upon the receipt of payment.

Pioneer Title Agency
ioneer Title Agency

COMMITMENT TO SERVICE
COMMITMENT TO SERVICE

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