Welcome back readers!  Here is the second installation in our two-part series on Closing Cost Terminology. 

Recording Fees- charged by County Clerk to record documents in the public records.

Document Preparation- fee charged by attorney for preparing legal documents for transaction.

Survey- confirms lot size and any encroachments or restriction violations.

Inspections- an examination of property for various reasons such as termite inspections;  inspection to see if required repairs were made before funds are received, etc. 

Real Estate Fees- an amount paid of real estate agents as compensation for their services.

Private Mortgage Insurance- insurance against a loss by a lender in the event of default by a borrower (mortgagor).

Interest- always paid in arrears(debt).

Homeowner's Insurance- protects property and contents in case of loss; must be for at least loan amount or for 80% of the value of the improvements, whichever is greater.

Escrow Account- Funds held by lender for payment of taxes, maintenance and insurance when due.

Maintenance Fee- charged by home owners association as set out in subdivision restrictions.

Assumption Transfer Fee- fee assessed by lender to buyer to assume present loan.

Amortization Schedule- schedule showing principal and interest payments throughout the life of the loan.

Prepayment Penalty-  charged by lender to premature payment of conventional loan balance. 

We hope this two-part installment has been informative.  Remember readers, Knowledge IS Power!