As home prices continue to rise, homebuyers are looking for other ways to save, especially when they close on their property.
Typical closing costs are between 2% and 5% of the loan amount for the borrowers.
Closing costs and fees are the expenses that are incurred when buying or refinancing a home.
Some of these fees include:
Lender’s Fees
■ Mortgage points
■ The loan application fee
■ The origination fee
■ The processing fee
■ The documentation preparation fee
■ The FHA, VA or USDA loan fee
■ The private mortgage insurance cost- PMI
Third-Party Fees
■ Notary fee
■ Escrow fees
■ Credit report fee
■ Appraisal fee
■ Survey fees
■ Title search and report fees
■ Owner’s title insurance premium
■ Real estate commissions
■ Document preparation fee
■ Recording fees
One way that you can reduce the cost to purchase property is to put a down payment in excess of 20% of the home’s value. By doing so , the lender may not require you to pay for private mortgage insurance (PMI) at closing.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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