What do closing costs consist of and is there any way to reduce them?
Closing costs include any, and in some cases all, of the following: Down payment, lender’s points, prepaid interest, loan origination fee, mortgage insurance, credit reports fee, appraisal and inspection fees, fees for surveys of the property, homeowner’s insurance, attorney’s fees, title search and insurance, prorated property taxes, recording fees, closing taxes, escrow account and insurance, as well as any other costs as specified in the purchase agreement. Closing costs usually amount to about 1-2 percent of your total loan amount. You are typically required to pay these costs along with your down payment in the form of a cashier’s check at closing. However, there are methods of reducing these costs – or even eliminating them altogether! One option is to have your mortgage amount increased to cover closing costs. In some cases, you can even negotiate with the seller to have them pay a portion of the costs prior to making a commitment to buy their home. You can also defer payment ra
