Posted on: 09th Sep, 2010 07:20 pm
This may be a silly question, but it's late and I've been researching homebuying all day...If I buy a house for $200,000 and the seller pays $5,000 toward closing will my loan amount be $200,000 or $195,000? I was told it would be $200,000, but I can't understand how that would be true.
Welcome lovinlondon,
Your closing costs are not rolled over into the mortgage. It is paid by the seller. Thus, the loan amount will not change. It will remain $200,000.
Your closing costs are not rolled over into the mortgage. It is paid by the seller. Thus, the loan amount will not change. It will remain $200,000.
The purchase price is not affected by closing costs, which are separate from your loan amount as well.
You're getting 100% financing? How did you arrange that?
You're getting 100% financing? How did you arrange that?
