Understanding Mortgage Closing Costs
Mortgage closing costs can vary widely from lender to lender so it is important to understand why this can happen. Mortgage closing costs can be broken down into THREE categories – prepaids, and 3rd party charges.
Prepaids – This is the term used to categorize anything that you are paying for in advance at closing. This includes Property Taxes, Home Insurance, Flood Insurance, Mortgage Insurance and Prepaid Interest for the remaining days of the month that you close in. Generally speaking, these fees should NOT vary widely from lender to lender because the calculation of prepaids is standardized.
3rd Party Charges – These are fees charged by 3rd parties for services during the mortgage process such as Appraisal, Credit Report, Title Charges, Transfer Taxes, Flood Cert, Tax Service, Property Survey and Pest Inspection. Generally speaking, these fees shouldn’t vary much from lender to lender.
Contact Insight Loans today to learn more and save thousands of dollars in closing costs compared to our competition.