How To Save On Mortgage Closing Costs

Good news for home buyers! A recent study by Bankrate.com shows that over the past year, mortgage closing costs dropped by 7%. The national average is currently $1,847 on a $200,000 loan. This is down from an average of $1,989 in 2014. Mortgage closing costs can vary in every state.

As a home buyer, you have more say over closing costs than you think. Costs vary between lenders, so everyone should compare at least three different companies. You don’t have to go with the lender your agent suggests, you should go with who is the best fit for your needs and offers you the a good deal.

Even though the average mortgage closing cost is on the decline, it still pays to shop for the best deal. Over time, every dollar you save can make a difference in your financial health. Know that you have the option to compare prices when it comes to closing costs. You can’t get a anything better on fixed charges such as taxes, but you can save money in other areas.

how mortgage closing costs can vary between lenders

Loan origination and third-party fees can often be negotiated. Take a close look at your good faith estimate and ask your lender to explain them. Also see if they are willing to lower some of them. This is where shopping around comes in handy, since this can be used as leverage in the negotiation process.

The good faith estimate comes in the form of an itemized list of estimated closing costs for everything from the lender’s fees, appraisal cost, title insurance premium, and partial month’s interest payment. The lender or broker charges some fees for themselves, along with some to third parties. The first step is to find out which are loan origination fees and which are third-party fees. If you aren’t sure, ask the lender or broker.

For more information on this topic:
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Ryan@RyanYourRealtor.com
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