In a recent blog post, loan officer Dan Green addressed the rising mortgage closing costs nationwide and how to reduce what you’ll owe at closing:
It’s getting more expensive to get a mortgage.
According to Bankrate.com’s 2013 Mortgage Closing Cost Survey, today’s typical mortgage applicant pays 6 percent more in origination and third-party fees as compared to 2012. Last year, costs had dropped seven percent.
For today’s home buyers and refinancing households, rising closing costs change the math of getting a mortgage. It’s helps to be prepared, and to know how zero-closing cost mortgages can improve your mortgage shopping.
So what is a mortgage closing cost?
Mortgage “closing costs” are fees consumers pay to start a new mortgage, and can be grouped into two categories:
- Organization/lender charges: Any fees paid in conjunction with your loan’s origination including line-items from your settlement statement which may include an application fee, a rate lock fee and/or origination points.
- Third Party charges: Any fees paid to parties other than your mortgage lender including the costs of your appraisal, the cost of your credit report, and title company settlement costs.
How can I convert my mortgage into a zero closing cost mortgage?
- You can pay your costs with cash at closing.
- You can add your closing costs to your loan balance (for refinances).
- You can waive your closing costs via a zero-closing cost mortgage.
This post can be found in its original form on The Mortgage Rate.