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what are closing costs on a 550k mortgage loan? (approx) and are we able to roll those into the loan amount?

by michael_77791 from Skowhegan, Maine. Oct 27th 2016 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,402 contributions

Much more info needed.. $550K loan, or $550K sale price? First, any loans over $417K are considered jumbo, but certain "High Cost" area's have larger loan maximum's to stay within conforming loan limits.. Down payment requirements will vary by lender if you are over $417K, but if you are at or below that amount, and you're not a first time home buyer, then you will need 5% minimum.. That being said, you cannot "Roll" costs into the loan.. All "Down Payment' funds go to lower the loan amount.. closing costs are in addition to the down payment.. They can be paid in several different ways.. you can pay them yourself, you can ask the seller to pay or contribute, you can accept a higher than par interest rate and receive a lender credit to pay them, or you can even ask your agent to help.. but regardless, if you are putting the minimum down, you will need to get the costs paid.. if you are over $417K and you are not in a high balance area.. then the down payment requirement will be higher.. at the very least 10%... and again, you cannot roll costs into the loan.. As far as how much the costs will be.. only someone local can advise you.. Certain costs associated with a new mortgage are "Fixed" costs.. meaning regardless of how much you are buying or financing, the cost is the same.. Escrow fee's, recording fees, underwriting fees, are all examples of "fixed costs".. Other costs are variable, and are based on either the sale price, appraised value or loan amount.. homeowners insurance, lenders ALTA policy, daily interest charge, etc, are all examples of fees that vary based on loan/sale price.. realistically, if you are interested in purchasing a home, the you really should contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Oct 27th 2016
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Mark Maroon (mmaroon@primeres.com)
#12 ranked lender in Maine - 4 contributions

Great answer William, Michael I have a mortgage company here is Maine (Scarborough) but have loan officers around the state. The best advice I can give is call me. There is no charge and no obligation but I can get the particulars and help you through what you need to know. The industry is just too confusing to get dollar amounts on the internet and in fact, other than what William said, if somebody gave you an answer, they would be breaking the law. I'm available anytime, even this evening and you can explain your goals. That will allow me to give you an actual very accurate estimate of all you should expect. It is my experience that all lenders are about the same in costs and rates but COMPETENCE is almost non-existent. My number is 615-2222 and email is mmaroon@primeres.com. I'm still at my office now and would love to chat.

Oct 27th 2016
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Joe Metzler (JoeMetzler)
#22 ranked lender in Minnesota - 3,262 contributions

ALL LOANS have closing costs. How you pay them can vary. Most people on a home purchase 'roll the costs' into the loan via something called 'seller paid' closing costs. This is very misleading, as people think it is free and the seller is paying. Rather, it simply refers to the fact that on paper, yes, the seller is paying. But the seller really never pays. You always will be simply increasing your offer in an equal amount to whatever the seller is 'paying'. For example, if the seller wants $200,000 for the home, and your closing costs are $8,000. You would make a $208,000 offer, and 'ask' the seller to pay your closing costs. Maybe people are fooled under this because again assume the seller wants $200,000 for the home, and you ask them to pay $8,000 in closing costs. If the seller agrees, people think they just got free closing costs. Well no, you didn't. The seller basically accepted a $192,000 offer. So you could have bought the house for $192,000 and paid your own closing costs. So in this version, you again are paying your own costs. You are just paying over time versus up front today. Next, interest rate and closing costs go hand in hand. A lender can offer you a lower rate, but your closing costs are higher. A lender can offer you really low closing costs, but your rate is much higher. Simply asking 'what are closing costs' does not give anyone the information needed to correctly answer that questions. Contact a local mortgage broker in your area. Give them a full application, and they can have a conversation about closing cost/rate options, and about rolling closing costs into your loan. For loans in MN, WI, and SD, visit me at www.Minneapolis-Mortgage.net

Oct 28th 2016
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