processing the application, underwriting and funding the loan, and other administrative services. After origination fees are disclosed in the LE they can generally can only increase under certain circumstances. Owner's title insurance Owner’s title insurance provides protection to the new homeowner if someone sues and says they have a claim against the ownership of a property that predates the current purchase. PITIA Principal, Interest, Taxes, and Insurance, (Association Fees when applicable) known as PITIA, are the basic elements of a monthly mortgage payment. Prepayment penalty A prepayment penalty is a fee that some lenders charge if you pay off all or part of your mortgage early. If you have a prepayment penalty, you would have agreed to this in your note when you closed on your home. Not all mortgages have a prepayment penalty. Principal The principal is the amount of a mortgage loan that you borrowed that you have to pay back. Your monthly payment includes a portion of that principal that creates your equity interest. Recasting a Loan A mortgage recast is when a lender recalculates your monthly payment after you make a large, one-time lump-sum payment on your principal, lowering your payment without changing your interest rate or loan term. When the lender recalculates the loan, they will create a new amortization schedule, which is a table of loan payments showing the principal and interest that comprises each payment until the loan is paid in full. There is
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