How much money will I need for a downpayment and closing costs?
Most customers make a down payment of between 10 and 20 percent of the house’s price. If you make a downpayment of as little as five percent but less than 20 percent, you will be required to pay for private mortgage insurance (PMI). Closing costs can range from three to six percent of the loan amount. We will provide you an estimated closing cost soon after your application has been received. These estimates will change if the product type or loan amount changes prior to closing. Closing costs are divided into three main categories: 1) Lender fees which include origination, points, application, credit report and appraisal; 2) Third-party fees which vary by state and the company you choose to close your loan. These fees can include fees for closing, title exam, title insurance and recording; and 3) Pre-paid items which are items collected at the time of closing but are not considered costs such as interest, taxes and hazard insurance.
