Buying a home is a major investment, so don’t pay more than you have to at the closing, says Fox Business.
According to the source, the average closing costs on a $200,000 home is 2011 were $4,070 – an 8.8 percent increase from the previous year.
“There’s no such thing as a free lunch, but you can get a loan and don’t pay any closing costs in exchange for a higher interest rate,” Zillow Mortgage Marketplace director Erin Lantz told Fox Business.
This option could make sense for a buyer not planning on being in the home for an extended period of time and can also be a sensible option for households who don’t have the cash up front. However, the source warns that in the long-term choosing the higher mortgage loan rate could end up costing you more.
Meanwhile, according to the source, if you’re spending a lot of money on a home, some mortgage lenders may even be willing to waive some closing fees. In addition, a weak housing market can work in the favor of a buyer by giving them more negotiating power. With this newly found power, you may be able to request a seller cover some or all of the closing costs.
Getting your daily dose of mortgage news is a great way to start considering the option of refinancing your home loan. By comparing mortgage rates with Freedom Mortgage you’ll be able to make an informed decision about the lifespan and monthly payments of your home loan.
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