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What is a GFE?A Good Faith Estimate is an estimate of all of the costs associated with closing a loan. This document should list the points, loan processing fees, inspection fees, title, escrow, recording and other fees the borrower is expected to pay. The Real Estate Settlement Procedures Act requires your lender to give you this estimate within three days of applying for a loan. The following summarizes many of the costs that will appear on a Good Faith Estimate.
PointsPoints are prepaid interest on a mortgage, charged by the lender based on the loan amount. Each point is equal to one percent of the loan amount; for example, two points on a $250,000 mortgage amounts to $5,000. Discount points refer t |