Average Closing Costs for A Home Mortgage

Must Read

Great Deals To Hunt At Target Stores During Black Friday 2010

As we near the main shopping event of November, more and more retail shops are beginning to reveal their...

Non Profit Debt Consolidation Loans

A beneficial service of the current trend of consolidating debts is the non-profit debt consolidation loans program. This...

Storyboarding Your Web Site

Before you start construction on your Web site, there are many steps to be taken. First you must have...

Earn affiliate income – affiliate marketing guide to success

Are you contemplating launching an affiliate business of your own? Then, this affiliate marketing guide is for you. Keep...

Cityville neighbors help you create and maintain a large city

Facebook is probably one of the most successful social networks of today, as you socialize with the HAPS and...

Creating User-Friendly Web Forms

If you've ever designed a complicated user interface, you know how limiting the basic HTML form controls are. You're...
Admin
test

When you are ready to purchase or refinance your home it is vital you educate yourself so that you are able to save money on closing costs for your loan.There are two types of closing costs for a home mortgage. First there is non-recurring fees like origination fees and 3rd party fees. Then there are recurring fees like escrow and prepaid fees.All of these fees will be listed on the good faith estimate(GFE) disclosure. This is a very important document to look over in detail. If you do not thoroughly review this document you could be getting ripped off. Not looking at the GFE is like not looking at a price tag before you buy something.Origination fees and 3rd party fees.The closing costs on a loan (non-recurring) entail the origination, points and third part fees. Lets break them down a little further. The origination fees or points are typically about 1%-3%. This is a negotiable fee so get a few GFE’s from companies and compare. If you like the service of one company but another has a lower origination fee request the company you like the service of to match the other companies fees. Be sure you have a legitimate GFE from all companies before you start negotiating. A good loan officer will ask to see a GFE before he negotiates. Otherwise you could just be making up numbers.Other non-recurring fees include all the 3rd party fees like the appraisal, processing, credit report, title fee, etc, etc. All these fees combined usually come out to about $1,500 – $2,500. These fees are not really negotiable, but often times mortgage companies will offer specials like Free Appraisal or something similar. This means they are paying the appraisal for you. There is no such thing as a free appraisal.Escrow and Pre-PaidsTaxes and homeowners insurance fall under this category. Also the recurring fees because these are typically paid every month. They can be built into your loan so you pay them with your mortgage every month. In this case the Escrow account would need to be set up.Both taxes and homeowners insurance are prepaid for 6 months. When you pay the mortgage company the mortgage payment + Insurance + Taxes payment each month the insurance and taxes get placed into the escrow account so that when they come due there is enough money to pay uncle sam and your insurance company. This takes away the stress of you having to save each month in order to pay homeowners taxes and insurance.When you are in the process of closing your loan the mortgage company will require a certain amount of money be place in the escrow account as reserves. This is to be sure there is always enough money in escrow to pay the piper. The amount of money to be placed in the account is dependent on what month of the year you are in and when you plan on closing your loan.These fees are non-negotiable because they really are not fees at all. Your money gets placed in escrow and when you sell your home or close the escrow account due to a refinance the remaining balance of the escrow account will get returned to you.GFESo go ahead and take a good hard look at that Good Faith Estimate so that you are not getting ripped of by your loan officer.And remember the numbers you actually see will vary, but this is at least a pretty good guide to help you figure out what items should cost.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Digital Marketing for Beginners

Digital marketing for starter, Let to basic learning about connecting with your audience in the right place...

What are 7 things poor people do that the rich don’t?

1. poor people watch TV in which people read books how many hours you spend in front of the TV and when...

Top 18 best small business ideas for beginners starting

A small business can be frightening and requires plenty of careful planning there are many small business ideas which can be beneficial...

Summer that makes you happy

We saw were already here I've been thinking about some of the things. I used to do with my husband even though...

4 Point to helpful tips specifically for caregivers

What you need to take a vacation. I know it sounds impossible creative and try to make it work for you almost...

More Articles Like This