Ways to save money on mortgage closing costs

first_imgAnother good reason to buy a home now – in addition to the relatively low interest rate environment – is that mortgage closing costs have declined 7% over the past year and now average $1,847 on a $200,000 loan, according to Bankrate.com.“The reason is there [are] caps in place on a lot of things now,” said Mike Brennan, founder of MJB Mortgage Services in Bohemia, New York, referring to a 3% cap on bank origination fees. “Plus it’s a competitive environment.”A decrease in mortgage volume over the last couple of years could have prompted lenders to become more competitive, according to Crissinda Ponder, mortgage analyst at Bankrate.com.“The most important thing to do is shop around,” Ponder said.Mortgage costs typically include taxes, title insurance, property insurance and the origination fee, which is what a lender charges for processing the loan. The origination fee typically includes the bank’s application fee, a processing fee and underwriting fees, according to Brennan. continue reading » 21SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img

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