Saturday, March 11, 2006How Much are Closing CostsJoe Wilson MortgageMax Approximately $2,200 in closing costs are fixed. This amount includes fees such as: Appraisal, Credit Report, Tax Related Service, Processing, Underwriting, Title Work, Wire Transfer, Closing, and Recording. Your mortgage broker origination fee is a percent of the loan and varies depending on the loan. The industry average usually ranges from 1%-1.5% The total costs of your loan can be estimated in the following table: Loan Amount Costs (% of loan) > $300,000 1.5% or less $300,000-$200,000 1.75%-2.0% < $200,000 2.0-2.5% Other costs that you may encounter when getting a loan are your Homeowner’s Insurance, Taxes, and Interest costs. These are costs you will pay regardless of the loan you do. Your current lender will refund to you insurance and taxes that they are holding on your behalf after closing. HOW TO COVER THE COSTS: Your approach to covering the closing costs of your loan may differ based upon how long you are planning on having the loan. If you plan to have the loan for less than 3 years, the following is the order in which you should consider covering your closing costs: 1. Increase the interest rate, allowing the bank to pay for some or all of the costs (sometimes known as a no-cost closing). 2. Increase the loan amount to cover the closing costs. 3. Pay the closing costs with cash at the closing. If you plan to have the loan for more than 3 years, the following is the order in which you should consider covering your closing costs: 1. Pay the closing costs with cash at the closing. 2. Increase the loan amount to cover the closing costs. 3. Increase the interest rate, allowing the bank to pay for some or all of the costs (sometimes known as a no-cost closing). MortgageMax has a $800 gift certificate to giveaway to the Historic Broadmoor Hotel in Colorado Springs. Click here to enter. posted @ 04:26 PM MST [link] [Karma: 3 (+/-)] [1 Comment ] |
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