Super Contributor
ShanetheMortgageMan
Posts: 8,254
Registered: ‎09-28-2007
Re: Good Faith Estimates Explained
Section 1200 is for fees charged by the government (state, county or city). These will vary depending on what state/county/city you are doing the mortgage transaction in and are set by the government. The costs of these are not negotiable, however if you are doing a purchase transaction you might be able to get the seller to cover some/most/all of them.

Line 1201 is the Recording Fee to record the Mortgage & Deed. This cost is determined by how many pages need to be recorded. Usually the first one or two pages have a flat fee, say $20, and then every page after that has a per page fee of $1 to $5. On the GFE this is usually estimated, but as soon as the docs are delivered to the closing agent it is revised to the exact figure. A resourceful originator will contact a local closing company to determine the reasonably accurate estimate on the recording fees.

Line 1202 is the City/County Transfer Tax or Tax Stamps. Some cities or counties charge fees for doing a mortgage transaction, or purchasing/selling real estate. This funds local government programs, schools, etc. Some base is on the mortgage amount being obtained and some base it on the transfer sales price of the property. Your originator should be doing research on if you will be charged city/county transfer tax/tax stamps on your mortgage transaction, and should be listed on the GFE.

Line 1203 is the same thing as line 1202 but on the State level. Some states, such as FL, GA & NY to name a few, charge fees on mortgage transactions or purchasing/selling real estate. Some base is on the mortgage amount being obtained and some base it on the transfer sales price of the property, and sometimes there is a tax on both (such as FL & NY).

Section 1300 is for miscellaneous fees that can’t be fit into the other sections (800, 1100 or 1200) because there are not enough line items to squeeze them in on. Such items could be a pest inspection fee, a survey, a breakdown of the mortgage payoff, or pretty much anything.

Below section 1300 is the total for your Closing Costs.