How to Get No or Low Closing Costs on Your Mortgage
Posted on | January 13, 2009 | 6 Comments
How to get no or low costs on your mortgage is something many Americans need to know. Closing costs are one of the main reasons many borrowers do not refinance their homes. Closing costs can often be very confusing and cause home owners to shy away from even the thought of refinancing. It seems that these mysterious rates always add up to much more then was initially stated. Most lenders out there realize that they are catching borrowers are a very vulnerable point in their lives. New home buyers or refinancers are excited because they are either getting a brand new home or a brand new rate. They are often naive to these fees that can quickly add up. Here are some ways to get no or low closing costs on your mortgage.
Shop around by contacting at least 10 lenders. Also, make sure to ask each lender for a quote on their closing costs. Some might not agree to this but many will. Please realize that the lower rates go, the higher closing costs are going to be. With rates being quoted under 5% in some markets these days, it is likely that you will see higher closing costs. Make sure to use your knowledge of each lender to negotiate lower closing costs though.
Make sure to identify which fees are not performed by third parties. These fees often include courier, express mail and administrative fees. These fees should be minimal and if you are a good negotiator you can often get these fees dropped altogether. Once again, make sure to use the quotes from other lenders to get out of most of these fees.
Lastly, but most importantly, know and understand that you can walk away at any time. Do not let the lender make you feel that they have put in hard work to get you to sign this mortgage. Many will try to make you feel bad. It is THEIR job to do all this hard work. It is your right to walk away at any time; even if all of the paperwork has been completed. Until you sign on that line, you are not obligated to pay the lender in any way. If you have any more questions on this issue, feel free to comment. Also, check out our mortgage rate predictions every Monday
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6 Responses to “How to Get No or Low Closing Costs on Your Mortgage”
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January 13th, 2009 @ 7:46 pm
[...] Random Feed wrote an interesting post today onHere’s a quick excerptClosing costs are one of the main reasons many borrowers do not refinance their homes. Closing costs can often be very confusing and cause home owners to shy away from even the thought of refinancing. It seems that these mysterious rates always add up to much more then was initially stated. Most lenders out there realize that they are catching borrowers are a very vulnerable point in their lives. New home buyers or refinancers are excited because they are either getting a brand new home or [...]
January 13th, 2009 @ 8:31 pm
[...] lender to do this! Do not feel bad for them and please do not sign a mortgage for this reason. Subprime Blogger has many other interesting things to do to get a low cost [...]
January 14th, 2009 @ 10:42 am
[...] How to Get No or Low Closing Costs on Your Mortgage [...]
January 23rd, 2009 @ 7:19 am
You are a very smart person!
February 7th, 2009 @ 6:16 pm
[...] How to Get Low or No Closing Costs on Your Mortgage [...]
February 8th, 2009 @ 6:45 pm
[...] How To Get No or Low Closing Costs on Your Mortgage [...]