Upside Down Mortgage

Closing Fees

When buying a home and obtaining a mortgage, there are many closing fees someone needs to pay. These closing fees can also be called closing costs. Naturally, when buying a home, most people want no closing cost fee home loans. Some mortgages have high closing fees whereas some have lower closing fees. It is rare to see a mortgage with true no closing fees because the mortgage company and the agent will have to make money somehow. The average seller closing fees costs vary from state to state.

closing fees
Common closing fees

Appraisal fee: Appraisal fee is roughly $350 for a single family residence or a condo. Appraisal fee is often paid before closing and before other closing fees are paid (which is usually at closing). Once the appraisal is done, you will have to pay the appraisal fee whether you decide to walk from the real estate deal or not.

Application fee: Some mortgages have application fees. The mortgage application fee is so that your mortgage application can be processed and does not have anything to do with whether you are qualified for the mortgage or not. However, there are plenty of mortgages with no application fee so those with application fees find themselves lacking customers.

Loan origination fee: Some mortgages also charge loan origination fees. But, again there are many mortgages without loan origination fees. Lenders charge this loan origination fees to make money off lending. Loan origination fees can be a small percentage of the loan or a fixed amount. Often, you can negotiate to waive or lower this loan origination fee. But you must negotiate before you apply for the mortgage and paid for the fee.

Discount points: At a real estate closing, you can choose to pay discount points along with other closing fees. The purpose of discount points is to lower your interest rate on your mortgage loan.

Taxes and Fees charged by government: In any mortgage closing fees, there are fees and taxes charged by the state and local government such as for the transfer of ownership of the real estate property.

Other closing fees: Beware of other closing fees. There are many fees a lender could attach to a mortgage to make more money off of borrowers. Most of the time, people wouldn't know what these closing fees are and assume they have no choice but to pay. This is not the case. You should investigate all closing fees before you sign the dotted line.

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