How To Save Money On Mortgage Closing Costs?

1 Answer

Answer :

One of the real sticking points in getting a new mortgage loan or refinancing an existing mortgage is the cost involved. A fairly typical mortgage closing can set you back a few thousand dollars or more. While it may seem less significant in light of the undoubtedly large loan you’re taking out, that still amounts to a lot of money it’ll cost you to get a loan. But there are ways to save on those costs. It may come at the cost of a little work and some forward thinking but result could see you cutting your closing costs significantly. Part of your decision on what to do to save on costs will hinge on how long you plan on remaining in your house. If you plan on staying in your house for the long haul, it probably makes sense to obtain the lowest mortgage rate you can at the possible expense of higher closing costs. Mortgage brokers and banks typically issue several different rates for 30 year loans, for example. You can choose to get a lower rate on your mortgage but it will cost you more at closing. In this scenario, the money you save monthly in interest on the mortgage will likely far outweigh any increase in closing costs so it makes sense to pay for the lower rate. Conversely, if you’re planning on moving again in a couple years or so, you might want to opt for the higher rate at a lower cost. The reason being is that you likely won’t have enough time in the house to see your monthly mortgage interest savings offset the increased closing costs it took to get those savings. You’d simply be wasting money getting a lower rate without having the chance to benefit from the rate. In short, you have to examine your own personal situation. You can save money on your mortgage regardless of how long you plan on staying in your home. You just need to do a little homework to know exactly which card to play.

Related questions

Description : How much money will I save by making a weekly mortgage payment with an extra $30 per payment?

Last Answer : This calculator lets you plug in the details of your loan and the impact of extra payments. Welcome to the collective, by the way.

Description : Are my estimated closing-costs too high?

Last Answer : This seems very high. I’ve bought 3 homes in my lifetime and refinanced a few times (am in the process of refinancing right now) and I’ve never paid more than 2,500 in closing costs.

Description : Do Real Estate Agents charge commission on seller paid closing costs?

Last Answer : answer:My limited understanding is that the seller pays the real estate commission, and if there's a buyer's broker involved, then the selling agent and buyer's agent split the commission. If your agent is ... perform the sale-well, you'll share in the increase, so that's not a bad thing at all.

Description : What is a good amount for closing costs on a home?

Last Answer : Closing cost depend on where you live and the price of the home you are purchasing. Closing cost can also be negotiated in the contract. Generally it can range from 2% to 4%. http://homebuying.about.com/od/financingadvice/qt/BuyClosingCosts.htm

Description : Has the costs of the Coronavirus pandemic exceeded the cost of the subprime mortgage crisis?

Last Answer : 628,000 dead in USA you do the math ! !

Description : How much money can solar power save you on energy costs?

Last Answer : answer:I'm interested in an answer to this question as well. Solar panels are expensive to install and I was wondering if they are worth it. But if you are trying to save money on energy, I highly ... 's annoying to have to unplug/plug all the time, but the savings on your bill can be substantial.

Description : Jacob is saving for a new bicycle which costs $175. He already saved $35. His goal is to have enough money to saved in six weeks to pay for the bicycle. Let d represent the money that he will save per week.?

Last Answer : 35+6d=175

Description : What is your opinion on closing off portions of your house to save on utility bills?

Last Answer : I’ve done it. Closed off the up stairs, no one using it all the heat went up there. Good Luck!!

Description : Which of the following statements concerning the implementation of robotic systems is correct? A : implementation of robots CAN not save existing jobs B : implementation of robots CAN not create new ... could prevent a business from closing D : robotics could noy prevent a business from closing

Last Answer : C : robotics could prevent a business from closing

Description : Which of the following statements concerning the implementation of robotic systems is correct? A : implementation of robots CAN not save existing jobs B : implementation of robots CAN not create new ... could prevent a business from closing D : robotics could noy prevent a business from closing

Last Answer : C : robotics could prevent a business from closing

Description : How did you save your variable mortgage home?

Last Answer : There are a couple of different loans you can look into with Freddie Mac. One is a HARP loan and one is a HASP loan. These loans are available to people that, through no fault of their own, is ... 's something I have to think about to make my payments affordable until I find another job. Good luck.

Description : Insurance Can Save You On Legal Costs?

Last Answer : Legal actions can be costly, and even if you win your case, you may not win reimbursement for your legal fees. Depending upon your attorney and the terms of your retainer agreement, you may ... lawsuits. Insurance will help you afford quality legal services, for simply the price of your premiums.

Description : A tractor shovel has a purchase price of Rs. 4.7 lacs and could save the organization an amount of rupees one lac per year on operating costs. The salvage value after the amortization period is 10% of the purchase price. The ... will be (A) 3.7 years (B) 4.23 years (C) 5 years (D) 7.87 years

Last Answer : (B) 4.23 years

Description : Suppose you are teaching in a minority college where castism and narrow mindedness victimize you, for better adjustment there you should Options: A) uplift the humanistic values beyond these narrow wall and ... such attitudes as it is against the norms of the Indian society D) none of the above

Last Answer : A) uplift the humanistic values beyond these narrow wall and develop scientific temper in your students

Description : What happens if I walk away from my mortgage even if I have money in the same bank?

Last Answer : answer:im not too sure how it works where you are, but here in spain they would just take the other assets off you. having said that, we also have laws against selling people loans via questionable methods. this is not legal advice

Description : Can I take a loan with a mobile mortgage ? I need some money for a visa. I told one , you give me so much money with my mobile. If I can do my job then you will take the mobile. And if it doesn't work, I will pay all the money in three months. Is this type of transaction permissible ?

Last Answer : This type of transaction will not be permissible. Because it is not permissible to get any benefit from the borrower in return for the loan. That includes interest. In the case in question, ... bin Masood agreed. That said , the conditional contract involves interest. (Sahih Ibn Hibban 1053)

Description : I am a married woman for 25 years,but my husband does not want to help me pay mortgage, or any other bills I think he is gambling he never has money, his bank acct is empy. Do I have any legal rights ?

Last Answer : Math is very important when getting your CNA for many reasons. Math is the basis of any medical field. You will need it to calculate weight of patients, medicine dosage, and to use with any procedures.

Description : A type of market in which there is a relatively high degree of concentration is referred as _____ A. Mortgage Refinance B. Oligopoly C. Near Money D. Open Economy

Last Answer : B. Oligopoly Explanation: Large number of potential buyers but only a few sellers is known as Oligopoly.