When you take out a mortgage, whether it’s for a purchase or a refinance, you must pay closing costs, which can vary considerably.
There are fees that must be paid to the lender, along with optional ones, such as mortgage discount points, and fees that must be paid to third parties, such as title/escrow and insurance.
Whether you pay these fees out-of-pocket is another question, but either way there will be a cost, and you must pay it in one way or another.
Two Types of Closing Costs
There are two main types of closing costs, including “recurring closing costs” and “non-recurring closing costs.”
Recurring closing costs are those that will be charged more than once, whereas non-recurring costs are charged just once.
Here are some examples of recurring closing costs (paid more than once):
– Homeowner’s insurance
– Mortgage insurance
– Flood insurance
– Property taxes
– HOA dues
*Note that not all fees are necessarily applicable depending on the property, location, loan type, etc.
Here are some examples of non-recurring closing costs (one-time fees):
– Lender fees (underwriting, processing)
– Loan origination fee
– Mortgage discount points
– Credit report fee
– Appraisal fee
– Home inspection fee
– Termite inspection fee
– Building record fees
– Title and escrow fees
– Doc prep fees
– Recording and wire fees
– Notary and messenger fees
– Transfer taxes
As you can see, there are quite a few costs associated with obtaining a mortgage, and not everyone has the cash on hand to pay for all these fees.
If you want to reduce your closing costs, there are number of strategies to do so and you should call The Doug Haldeman Mortgage Team today to start your loan process and see where you can save today and for your future!
Doug Haldeman NMLS# 298419
Cherry Creek Mortgage NMLS# 3001
13321 N Outer 40 Rd Suite 500
Chesterfield, MO 63017
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Knox Mailhes with Integrity Land Title joins the studio to Co-Host with Doug this Sunday. Knox is Vice-President of Integrity Land Title and shares with listeners how important it is for homeowners to complete their home purchase with them. They have learned, by offering more than title insurance and escrow services, their clients can count on them for other important parts of their real estate transactions. Integrity Land Title was founded in 1999 and has grown from a single location in St. Louis to 15 locations spanning across the Midwest from St. Louis to Lake of the Ozarks all the way to Kansas City. For more information be sure to contact Knox!