Which fee in MortgageCoach reduces Cash to Close?

The Contribution fee is the only fee that contains special logic to reduce Cash to Close. No custom fee or other fee type will impact Cash to Close.

What the Contribution fee does

• A positive dollar amount reduces Cash to Close.

• Only Lender, Seller, or Broker can be selected as the payer.

• You can apply the Contribution to either APR or Non-APR costs. Applying it to APR costs will not change APR, it only reduces cash required at closing.

How to enter a Contribution

1. Open the Closing Costs page.

2. Go to Closing Costs Details.

3. Select "Add Fee"

4. Select Contribution from the drop-down list.

5. Enter the contribution amount as a positive number.

6. Choose who is paying the contribution (Lender, Seller, or Broker).

7. Select whether it applies to APR or Non-APR costs.

Example

Entering a $2,000 Contribution and assigning it to Seller-paid Non-APR costs will reduce Cash to Close by $2,000. If the Contribution exceeds the total closing costs, the system will show negative closing costs and Cash to Close will decrease accordingly.

Important notes

• Marking a normal fee as “seller paid” only removes that fee from the borrower’s responsibility. It does not reduce Cash to Close.

• Only the library Contribution fee contains the logic to adjust Cash to Close.