Learn About: Closing Costs

Should You Consider Financing Closing Costs, Escrow Reserves, or Other Cash Needed at Closing? If you’ve built up some equity in your home, when you refinance, you may be able to “cash out” some of that equity to pay off … Continue reading →

Homeowner’s Insurance This insurance covers replacement costs for damages caused by fire, wind or other disaster that might affect the value of the property. Typically, the insurance also includes personal liability and theft coverage. Flood or Quake Insurance Additional hazard … Continue reading →

Property Taxes This is the one closing cost that is often prorated between the buyer and seller. If the seller has already paid the annual property taxes, the buyer typically reimburses the seller for the period in which the buyer … Continue reading →

Loan Origination Fee This covers the administrative expenses in setting-up and processing the loan. The loan origination fee may be a percentage of the mortgage amount. Points (optional) An option for the home buyer is to pay points to lower … Continue reading →

There are certain standard costs associated with closing a loan. If it’s a purchase, these fees are split between the buyer and the seller, as spelled out in the sales contract. We will walk you through the closing costs, answering … Continue reading →