Posted on: 20th Apr, 2009 01:44 am
Why are closing costs so expensive? I was quoted $4100 on a $135,000 30 year refinancing loan and $8500 on a $172,000 15 year refinancing loan both at 4.6% interest rates.
Hi linda,
Welcome to our Forum.
I would like to say that, When you buying your own home there is mortgage closing cost is very important part this case.
Mortgage closing cost is expensive because, The at time of buying home there mortgage company helps you to buy home so it will costly.
Overall the closing cost is downed by 300 $ in America from 2006.
Thanks & Regards.
Welcome to our Forum.
I would like to say that, When you buying your own home there is mortgage closing cost is very important part this case.
Mortgage closing cost is expensive because, The at time of buying home there mortgage company helps you to buy home so it will costly.
Overall the closing cost is downed by 300 $ in America from 2006.
Thanks & Regards.
linda, i apologize for the lack of information contained in the response to you earlier.
some costs are fixed, of course. your estimate may include points (origination points, discount points, for example), and you may have also been quoted for prepaid interest, escrows, legal fees, etc. it's difficult to tell you if your quotes are high or low. territory matters, too, as some locales are more expensive than others.
i'm afraid i'm not much help here, but overall, i'd say your $4100 quote is pretty good, and the higher one may be reflective of add-ons for cash out, etc. without direct knowledge of the transaction(s), it's hard to give good advice on costs.
some costs are fixed, of course. your estimate may include points (origination points, discount points, for example), and you may have also been quoted for prepaid interest, escrows, legal fees, etc. it's difficult to tell you if your quotes are high or low. territory matters, too, as some locales are more expensive than others.
i'm afraid i'm not much help here, but overall, i'd say your $4100 quote is pretty good, and the higher one may be reflective of add-ons for cash out, etc. without direct knowledge of the transaction(s), it's hard to give good advice on costs.
Make sure you get a good faith estimate. Cross reference the fees being charged against some of the examples shown in the reference section of the mortgage fit site. (see the top right portion of your screen where it says HIGHLITES). You can also check the "closing costs" section of my web site for examples of what your costs could/should be.
Yes, closing cost is highly expensive because Lenders, brokers and third-party mortgage originators charge all sorts of fees to borrowers. It's hard for borrowers to know whether they're being overcharged.
You also have to be careful about how much each item costs. Some costs are simply estimates, and the lender has no control over them.
You should know exactly what you will have to pay :
1)Discount and Origination Points:
2)Origination Points
3)Application Fee
4)Appraisal Fee
5)Title search and title insurance
6)Flood Certification:
7)Recording and Transfer Charges:
8)Etc....Too many factors.
For your case , you study your paln and amount use to calculate your closing cost by using "http://www.loanpage.com/morclose.htm"
I hope You got an idea.....!!
Thanks
Hari
You also have to be careful about how much each item costs. Some costs are simply estimates, and the lender has no control over them.
You should know exactly what you will have to pay :
1)Discount and Origination Points:
2)Origination Points
3)Application Fee
4)Appraisal Fee
5)Title search and title insurance
6)Flood Certification:
7)Recording and Transfer Charges:
8)Etc....Too many factors.
For your case , you study your paln and amount use to calculate your closing cost by using "http://www.loanpage.com/morclose.htm"
I hope You got an idea.....!!
Thanks
Hari
