What Are Closing Costs
The fees that you pay at the closing of a real estate transaction are called closing costs. These typically include a variety of expenses such as loan origination fees, appraisal fees, title searches, and more. Although both buyers and sellers have expenses at the end of a real estate transaction, buyers typically pay a majority of the closing costs.
Typically a borrower will make monthly payments on the principal of the mortgage, interest, and any taxes. Paying off the principal builds equity or the amount of money that the homeowner has gained on the home.
ClosingCorp, a partner of ours, released a report on July 25, 2018 showing average mortgage closing costs. This report was based on October 2017 to March 2018 home-purchase transactions, more than 900,000 in all. A summary of their findings is that closing costs averaged $5,651 including taxes and $3,438 excluding taxes.
How We Can Help
At Homeowners Financial Group, we pride ourselves in remaining competitive with all aspects of the mortgage process, including closings costs. To find out where we stand, please contact a Licensed Mortgage Professional at a Homeowners Financial Group location near you.
See the full ClosingCorp report here.