Average Closing Cost

As you consider potential mortgage financing options, a comparison of average closing cost may influence your decision. Average closing cost rank second only to average interest rate in the minds of most homeowners, followed by concerns over actual monthly payments. There are numerous factors contributing to the closing cost which you may unwisely end up paying.

Average closing costs can and do vary.

The type of mortgage product selected, the down payment (if it is to be a purchase), state regulations, the interest rate, time of year and date of the month are some of the primary factors determining what should be the average losing cost for your particular situation.

Other related expenses would include:

• Loan origination points
• Discount points
• Mortgage broker fee
• Application fees
• Processing fee
• Wire or funding fee
• Yield spread premium
• Closing fee
• Abstract fee
• Express mail fee

Some or all of the above fees can potentially be negotiated to your benefit. Without having an independent review of all of your loan documents, the odds are stacked against you. Very often non-suspecting homeowners have fallen prey to policies designed to primarily server and protect lenders. Insist upon an independent review of any and all documents prior to signing anything. The slightest over-sight on your part can manifest itself into your worse nightmare.

See Also:

• Predatory Lending
• RESPA
• Home Title Insurance