Closing costs are fees related to your mortgage that may cost you thousands of dollars and are typically 2 to 5 percent of the total purchase price of the home. Closing costs include application fees, appraisal fees, underwriting fees, credit report charges, surveys, taxes, loan origination fees, discount points, title searches, title insurance, and many more. Guess what? Paying the closing cost fees will not count towards your down payment or mortgage balance. It's a separate expense. The average closing costs in America was $5,749 in 2019, according to data obtained by "Closing Corp".
How much do I have to pay?
It depends. Homebuyers typically pay 2 to 5 percent of the total cost of the property. Homeowners who are refinancing their loan or obtaining a HELOC must also pay for closing fees. So if the purchase price of the home is $200,000 then your closing fee can range from $4,000-$10,000. Homebuyers can pay out of pocket as a one time fee or roll the fees onto the mortgage loan if the lender allows it. In some cases, sellers may pay for all or some of the closing costs if the buyer negotiates properly.
Buyers closing fees include (depending on the loan):
1. Third party fees, appraisal, title, taxes, and credit report fees
2. Escrow account fees (an account that acts as a savings for your property taxes and insurance premiums)
3. Interest, taxes, and mortgage insurance
4. Points and lender origination fees
Save money while closing on a specific date
**Consult with a Tax and Mortgage professional...
Perks for closing on the last day of the month:
Buyers will save money on mortgage interest because interest itself accrues from the closing date to the end of the month.
Buyers can take advantage and pay their balances sooner to increase equity.
Perks for closing in the beginning of the month:
Gives you more time before the next payment is due
Perks for closing earlier in the year:
Tax breaks. You deduct more on private mortgage insurance, property taxes, points, and mortgage interest. The earlier the better.
Commentaires