Wednesday, July 13, 2016 - Article by: Prospect Financial Group - Prospect Financial Group, Inc. -
What are closing costs? Closing costs are made up of fees paid to the lender, third party charges (title insurance, escrow services, and appraisals), and property taxes and homeowners insurance. All of your closing costs will usually equate to around 2-5% of your total loan value. This can end up being pretty expensive Do I have to pay my closing costs?
No, you don't! Most lenders will give you the option of paying a slightly higher rate in exchange for paying your closing costs. This means that the lender would recoup the costs in your mortgage rate, and you would pay them over time. This can be a great option for people who don't have the capital to cover closing costs.
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