Closing costs are the associated fees with a mortgage when buying or refinancing a property. Discount points used to adjust your interest rate down are one component of closing costs. Then there are lender charges which typically include a processing and underwriting fee. Then there are services you cannot shop for. These include your appraisal fee, credit report charge, flood cert, etc. Then there’s charges you can shop for which are mostly title and escrow related with the bulk being title insurance for your lender. You will also have government, state, and local taxes and transfer fees. In addition, you’ll typically need to pay 1 year upfront homeowner’s insurance. Lastly, if you are required to escrow your property taxes and homeowners insurance premiums or choose to do so, you will need to fund your impound account with a certain number of months of these payments. I’m Stewart Brown, a licensed Mortgage Loan Originator in Palm Springs, California here to simply topics in Real Estate and Mortgage Lending. Please, like, share, follow and subscribe!
