I inherited my fathers property and realized that out of the $499,000 mortgage he had only $465,000 went to him. The rest went to numerous people including $21k to a title company. Is this normal? What is the average cost of a mortgage, and does it usually cost more the more you barrow(not talking about intrest)?
Pay off of old liens?
Some costs, including Title Insurance are based off of the loan amount. However, 21k is very exhorbitant. As BLL mentioned it sounds like there was an outstanding lien of some kind.
Was this transaction completed through a bank or mortgage broker? Broker’s charge a fee for their services, but it shouldn’t be very high.
Double R -
The 21K may have went towards unpaid taxes leins, etc… Take a look at the Title Report to see what leins or clouds on title he may have had.
Hope this helps! :cool
Look at the HUD-1 and you will see where the money went.