Knowing Closing Costs
When we are ready to close in on a home, we tend to get overwhelmed by the entire process. There’s so much to do, loans to be procured, insurance… the works. Sometimes in this melee, we may forget certain things. For instance, we may not realize the importance of closing costs or settlement costs.
These costs are associated with the sale of a home or the refinancing of a mortgage and generally range from 3% to 8% of the total loan amount. Usually, when you refinance, the costs are lower and many of the costs can be rolled into the loan. There are certain costs that you just need to pay—for instance some fees and taxes, which the law decries that the buyer pay. However there are other costs that you can negotiate and split with the seller. For instance, you can do so with points. So it is important that you have a good idea of the expenses you can share to reduce your final costs.
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