What are Closing Costs?
Closing costs consist of three main groups: third party costs, mortgage taxes & lender fees.
- Third party costs are fees that you or the lender pays on your behalf for you to obtain a mortgage, including appraisal fee, credit report fee, title fee and attorney fee. We shop individual services in order to provide these services at the most affordable cost in order to help save you money.
- Mortgage taxes will be exactly the same between all lenders, These cost will be different for every property.
- Points and lender fees are essentially what the mortgage underwriters charge to originate your home loan. There is a direct connection between these cost and the interest rates you might pay. As a general rule the lower the interest rate is brought down, the more the closing points will cost, or the lower the closing points cost, the higher the interest rate will be. If you have less available money to bring to closing you can trade the savings on closing cost for a bit higher interest rate, or you can pay more at closing in order to "buy down" the interest rate.
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