Closing costs are based upon an average of customary closing costs around the nation and include a 1% origination fee. Your actual closing costs will reflect upon the common costs to your area and may vary according to the specific product type you've selected. Pre-paid expenses include 30-days pre-paid interest and two months escrow for taxes, homeowners insurance and private mortgage insurance, if applicable. Actual pre-paid expenses may vary according to closing date and property location. Reserves are funds available to borrower after closing and do not have to be paid to the lender.