CClosing costs are fees that are associated with the purchase of a home and are paid at the closing of a mortgage. These fees can range from 2-5% of the total purchase price of the home and can add up to a significant amount of money.

In this article, we will explain what you need to know about mortgage closing costs and provide tips on how to save money during the closing process.

What Are Mortgage Closing Costs?

Mortgage closing costs are fees associated with the purchase of a home and the closing of a mortgage. These fees can include:

• Loan origination fees
• Appraisal fees
• Credit report fees
• Title insurance fees
• Attorney fees
• Property tax and insurance
• Prepaid interest

These fees can vary depending on the location, the lender, and the type of loan you are getting. It is important to review the Loan Estimate that your lender provides to you to understand the costs associated with your mortgage.

How to Save on Mortgage Closing Costs?

Closing costs can add up to a significant amount of money, but there are ways to save. Here are a few tips to help you save on your mortgage closing costs:

1. Shop around for lenders: Comparing quotes from different lenders can help you find the best deal on closing costs. Be sure to compare both interest rates and closing costs.
2. Negotiate with your lender: Some lenders may be willing to negotiate their fees to win your business. Ask about discount points, which are fees paid at closing that reduce your interest rate.
3. Review your Loan Estimate: Your lender is required to provide a Loan Estimate that lists all the fees associated with your mortgage. Review this document carefully to ensure you understand the costs associated with your loan.
4. Choose a no-closing-cost mortgage: Some lenders offer no-closing-cost mortgages, which means they cover some or all of the closing costs in exchange for a higher interest rate.
5. Bundle services: If you are getting a mortgage and also need other services, such as title insurance, you may be able to bundle these services and save money.
6. Close at the end of the month: Closing at the end of the month can help you save money on prepaid interest.

Closing costs are an important part of the mortgage process, and it is important to understand the fees associated with your mortgage. By shopping around for lenders, negotiating with your lender, and reviewing your Loan Estimate carefully, you can save money on your mortgage closing costs.