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On average, what percentage of a loan do closing costs make up?

How much are closing cost, in a percentage relation to the overall loan? by SRaddish from Everett, Washington. Mar 8th 2013 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

There is no "Average"... If your purchasing or refinancing, the costs will be different.. Some of the costs associated with a mortgage are "Fixed".. Meaning, if you purchase a $50K home or a $550K home, the cost is the same.. Other fee's are "Variable".. Meaning they will be based on the property value, or loan amount... Also, depending on if your refinancing or purchasing, you can get contributions to your costs either from the seller, RE agent, or lender, which would lower the fee's you pay.. You should stop guessing and contact a local mortgage and have them look at your complete scenario.. That's the only way to be accurate.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Mar 8th 2013
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Larry Lechel (Larry@GenevaFi.com)
#16 ranked lender in Indiana - 38 contributions

In the mortgage loan broker world it will vary depending upon the following factors: 1) Which lender it is placed with 2) Whether the broker is paid by you the consumer (called Borrower Paid Loan B.P.C.) or a by the lender (Lender Paid Compensation L.P.C.), and 3) The State and location of the property. The best way to shop for a loan is to look the Truth-in-Lending Document and compare the A.P.R. (not the actual rate). Whomever has the lowest A.P.R. wins.

Mar 8th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,970 contributions

All loans have closing costs. The percentage of actual costs will vary by the loan amount and rate choices you make. Some costs are fixed, like the appraisal and credit report no matter what the loan amount - while others are based upon the loan amount, like origination, state taxes, and some title company fees. Once base overall costs are determined, now it is a matter of your choice on what rate you'd like, and how you want to pay for the costs. For example, lets say your base closing costs are $5000, and that equates into a 3.50% interest rate. But you are a little short on cash to close, so instead you opt to take a 4% rate, which equates to just $500 in closing costs. You can go the other way too... Assume you'd like a 3.00% interest rate. No problem, you'll have you base $5000 cost plus maybe $5000 more in discount points for a total of $10,000. These of course are just examples, but you can see how there really is no way to answer your question, as there is no general answer. It depends on many items... IN MN or WI, visit www.MortgagesUnlimited.biz

Mar 9th 2013
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Brady Bales (bradybales)
#8 ranked lender in Indiana - 15 contributions

That is different on every loan. We have programs that have no closing cost. Give me call at 317 713 9533.

Mar 8th 2013
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Jerry Potter (JerryPotter)
#81 ranked lender in Washington - 37 contributions

That is a bit difficult to answer not knowing the loan amount. Some lenders charge an origination fee of 1% plus additional admin fees. You'll also have roughly $900 in title/escrow on a refinance or between $1500-$2000 on a purchase. For specifice costs feel free to call.-Jerry 253.631.2212

Mar 8th 2013
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Charlie Sparks (CharlieSparks)
#9 ranked lender in New Mexico - 399 contributions

William's answer is very accurate. One rule of thumb.... interest rates and costs work inversely. The lower a lender's costs are means that the interest rate is higher. You could also increase your costs (and pay points) to buy down the rate.

Mar 8th 2013
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Chad Scott (ChadScott)
#13 ranked lender in Washington - 10 contributions

The "average" on a conventional refinance is approx $1800-$2500, depending on your loan amount and other factors. Government loans and Purchases will be higher. You can choose to pay those fees yourself, or have them paid on your behalf in the form of a higher rate.Give me a call and we can discuss your situation. I am local here in Mukilteo - 425.954.0024.Chad

Mar 8th 2013
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Jake Droge (www.jakedroge.com)
#1 ranked lender in South Dakota - 15 contributions

Very good answers by many of the loan officers here. I specialize in reverse mortgages in SD, MN, IA and NE so I would recommend reaching out to someone locally. Jake Droge 605 941 7029 jakedroge.com

Mar 8th 2013
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Jay Simmons (JSimmons)
#78 ranked lender in Washington - 2 contributions

Very good information by everyone who has repsonded so far. I'm in Eastern Wa over in Spokane, but I actually have family in Everett & have a lot of clients there & the overall Seattle area. Please feel free to call or email if I can assist you in any way.. Jay 509-879-3998 / JSimmons@wjsHomeLoans.com

Mar 8th 2013
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Chris Davenport (todaylending)
#20 ranked lender in Oklahoma - 36 contributions

If you were to place an offer on a foreclosure the selling bank would assume max 3%.

Mar 8th 2013
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Matthew De Weese (Pacific1Lending)
#820 ranked lender in California - 55 contributions

It would best be answered in the form of a dollar amount. Usually $ 2,400 should cover the closing costs up to 350,000 loan amount and if you have a loan amount up to $ 417,000 about 2800 should be close to the closing costs. There are several factors that go into this such as your county and you can get a credit towards your closing costs if you increase the note rate.As a lender we offer several programs that can offset your costs and we do no point loans as well as no costs loans.Christopher Nelson BeardPacific One Lending and Real EstateSecured Marketing Concepts Corporation888-733-4224 X 103 (Toll Free)310-351-9441 (Cell)714-617-1988 (Direct)800-377-1538 (Fax) cbeard@pacific1lending.comwww.pacific1lending.com

Mar 8th 2013
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Peter Savino (855411LEND)
#100 ranked lender in New Jersey - 332 contributions

Tough question to answer, need more information, refi or purchase ? are you asking for the total cost for the transaction or just the cost the buyer or client will be responsable for ? lender credit ? sellers assist ? Give me a call and we can discuss further. 855 411 LEND

Mar 8th 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

It really depends on each loan and all of the factors surrounding that loan.Call us or email us at 201-962-3555 or Team@BestMortgageOption.com for ano cost no obligation analysis of your situation.Ask for Michelle or Benny We will find the Best Mortgage Option to suit your needs!You can check us out at www.BestMortgageOption.com

Mar 8th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Depending on the type and amount of the loan, and the property value, closing costs will run 2% to 3%. Your mortgage broker can give you more accurate figures.

Mar 8th 2013
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