Closing Costs

Hey everybody, it’s Ken at the Capitol Mortgage Group. You’ve heard me say this time and again, how important it is to make sure you’re getting a second opinion when you’re shopping for a mortgage. Not only should you be looking at the interest rate, but you should also be looking at the closing costs. Closing costs can vary by thousands of dollars from lender to lender. Check out this quick video where I break down a closing cost quote, and how you can save money by working with an independent mortgage expert like Capitol Mortgage Group.

Okay, so here we go. Here’s a quick breakdown of a typical closing cost estimate you would see from most banks in our market. In a 275 thousand dollar purchase price, right around the average price of a home in the RBA, with 5% down. Now I contacted multiple banks today and got the quotes. So on average you’re looking at 4.125% for a 30 year fix with an APR of 4.32%.

Now, a couple of things were a little bit higher, but none were lower than that 4.125%. There’s an origination fee of 995, again, that’s an average. Some things are a little bit lower by maybe 100 bucks are so, some are a couple hundred dollars higher. An appraisal fee, credit report fee, that’s pretty typical. On average cost we would see. Your average title company or closing attorney’s right around 595 for closing, and you have your title insurance that’s based on the price of the home, or a percentage of a price on the home.

Then again, you’re counting safe recording taxes, again, based on the percentage of the price of the home and your loan amount. So there you would have about 5,485 dollars in closing costs. But then you would also have your prepaids. We collect, usually, the first year’s homer’s insurance up front, and on average the first six months taxes. Again, just an estimate. Here, 2,279. So your total closing costs on prepaids would be 7,764 dollars, if you’re buying a home with a 275 thousand dollar purchase price. The higher the price, it’s going to be a little bit more in closing, lower price would be a little bit less in closing costs.

So, you can negotiate for the seller to pay all or a potion of that closing cost, or you could also contact an independent mortgage expert like Capitol Mortgage Group. And check this out, today the rate goes from 4.125 to 4% with an APR of 4.196. That [inaudible 00:02:19] fee goes from 995 to zero. And then, at that particular rate, we also offer a CMG credit. Capitol Mortgage Group closing cost credit of 1,500 dollars. So not only would you a lower rate, saving thousands of dollars in interest, but also about 2,500 dollars less at closing.

So there we go, that’s why it’s so important to make sure you’re getting a second opinion. Just one example, thousands of dollars back in your pocket by using an independent mortgage expert or mortgage broker like Capitol Mortgage Group when you’re shopping for your home loan. So give me a call, 362-7600. Check out my website, capitolmortgagegroup.com, that’s capitol with an “O” mortgagegroup.com, an find out why so many other people are finding a better way to get their home loan.