Great Mortgage Closing Cost Rates
Part of the cost in securing a home is paying all of the closing costs associated with your purchase. Oftentimes, new homeowners are unpleasantly surprised to learn that they will have to pay a variety of extra fees in order to close on their home.
These amounts vary, but typically run into the thousands of dollars even exceeding five thousand dollars or more when all is said and done. Fortunately, savvy lenders know that this particular expense could be just one more thing to make borrowers look elsewhere for a loan.
Thus, many are now offering low closing cost rates to make home purchasing a reality for more and more homeowners. Let's take a look at one sample plan and the costs that can be saved for you, the borrower.
A Low, Fixed Rate
The big question mark that many borrowers have is this: exactly what will my closing costs be? Well, in most states that information has to be spelled out ahead of time; it isn't precise but it is close to what the final cost will be.
To counter the shock of receiving a closing cost estimate of $4,142.36, some lenders are offering a low, fixed rate covering all closing costs. One lender, in fact, is offering a $695 rate that covers just about everything and is good for mortgages up to two million dollars!
What's In The Rate
A fixed rate closing cost package can include all of the following:
Generally, you will pay for any extra title insurance you desire and if there are taxes owed, you'll be assessed that charge separately at closing. Finally, you can receive a mortgage loan rate lock and use the services of the mortgage company's broker to get the best rate available.
Of course the question that some people ask is this: doesn't the fixed rate eat into the lender's profits? Yes, it does. However, by targeting customers who really need this service, these types of lenders can expand their pool of customers and through volume loan underwritings make more money in the long run.
Lenders win because they have more customers who may be also be interested in other services and you win because you aren't bogged down by closing costs at home signing.
These amounts vary, but typically run into the thousands of dollars even exceeding five thousand dollars or more when all is said and done. Fortunately, savvy lenders know that this particular expense could be just one more thing to make borrowers look elsewhere for a loan.
Thus, many are now offering low closing cost rates to make home purchasing a reality for more and more homeowners. Let's take a look at one sample plan and the costs that can be saved for you, the borrower.
A Low, Fixed Rate
The big question mark that many borrowers have is this: exactly what will my closing costs be? Well, in most states that information has to be spelled out ahead of time; it isn't precise but it is close to what the final cost will be.
To counter the shock of receiving a closing cost estimate of $4,142.36, some lenders are offering a low, fixed rate covering all closing costs. One lender, in fact, is offering a $695 rate that covers just about everything and is good for mortgages up to two million dollars!
What's In The Rate
A fixed rate closing cost package can include all of the following:
- Mortgage Application Fee
- Administrative Fee
- Processing Fee
- Funding Fee
- Underwriting Fee
- Tax Service
- Miscellaneous Fees
- No Tax Escrow Required
Generally, you will pay for any extra title insurance you desire and if there are taxes owed, you'll be assessed that charge separately at closing. Finally, you can receive a mortgage loan rate lock and use the services of the mortgage company's broker to get the best rate available.
Of course the question that some people ask is this: doesn't the fixed rate eat into the lender's profits? Yes, it does. However, by targeting customers who really need this service, these types of lenders can expand their pool of customers and through volume loan underwritings make more money in the long run.
Lenders win because they have more customers who may be also be interested in other services and you win because you aren't bogged down by closing costs at home signing.