CLOSING COSTS
|
REFINANCING TIP
Consider refinancing when rates fall two percent below your current rate and you plan on staying in your home at least 18 months more.
|
|
What are typical closing costs?
You can expect to pay the following closing costs at the time of settlement:
- Appraisal fee -- covers the cost of a professional written estimate of the property's value.
- Attorney's or escrow fees -- your own and the lender's if they have one.
- Credit report fee.
- Points (see Question 76).
- Documentation preparation -- covers the cost of preparing the deed and other paperwork.
- First year's premium on fire and hazard insurance.
- Impounds (also known as "escrow account") -- sufficient to cover real estate taxes on the purchased property for the current tax period to date. The lender then pays these bills when they come due.
- Interest -- paid from the date of closing until 30 days before your first monthly payment.
- Title insurance.
- Mortgage insurance if required.
- Origination fee -- covers the lender's administrative costs.
- Recording fees.
- FHA mortgage insurance (FHA loans only).
- VA guarantee fees (VA loans only).
