What Percentage Are Closing Costs On A Mortgage ?
The closing costs are based on the amount of mortgage a person takes. Usually, it has been seen that the percentage of closing cost is around 3 to 6 percent of the total mortgage amount. However, this percentage can be brought down with careful negotiation.
All lenders levy closing costs, but the amount varies from one lender to the next. Different costs are included in closing costs and it is best to get an itemized estimate of the costs before you sign on the dotted line. This way you will not be in for a surprise when you have to pay this cost upfront to close the mortgage.
Costs like appraisal fee, document processing, loan origination, survey costs, discount fees, real estate taxes, title insurance and even escrow payments are part of the closing costs.
You can get a good faith estimate from different lenders that will give you the full details of the costs involved. Also, find out what are costs that can be negotiated and do the same. Once you have negotiated the costs, you can further bring down the closing costs. The lenders have to disclose all the costs and these are usually given when the application is given to the borrower.
The costs come under the head of closing costs are discount points, private mortgage insurance if you do not lay down the required twenty percent down payment, origination fee, escrow payments, title insurance, appraisal fees, escrow deposits for the taxes, survey and inspection of the property, and homeowner's insurance.
More Articles :