Today's Rates & Understanding Closing Costs

Closing costs are based on purchase price or loan amount and should total 2-3%. Costs such as home owner's insurance, property taxes, and setting up a new escrow account are borrower related and should be deducted from the total costs when comparing quotes between lenders.  Be wary of lenders who leave out this information so as to show a lower bottom line but will end up having to add these costs down the line.

Typical costs that should not vary from lender to lender:

• Prepaid interest is the daily interest due until your first payment is made.
• Appraisal fee is required for every new transaction and is paid to the appraiser for services performed as required by lender. Typically paid prior to inspection.
• Title fees such as closing fee, title search, and title insurance are paid to the title company to perform your loan closing, ensure your property is free of any unwanted liens, and to provide insurance for errors.
• Recording fees/taxes are set by your County's Register of Deeds and are required to record the new Deed of Trust and any other legal documents as well as paying the state tax stamps.

Negotiable fees are typically paid the the lender and/or broker:

• Origination fees
• Broker & Lender fees
• Underwriting fees
• Processing Fees