This amount is based on a percentage of the total loan amount, with 1% or 1 "point" being a common charge. However it can be negotiated anywhere from zero to multiple points based on competitive factors and the credit worthiness of the borrower.
In slow real estate markets, lenders will drop this fee to lower levels of one half or one quarter of a percent to entice borrowers to deal with them. They raise the rate for borrowers with credit problems or bankruptcies. The amount for this item will normally appear in the left column as an amount "Paid From Borrower's Funds at Settlement." This is a DEBIT to the Buyer side of the statement.
