Closing Costs
What is a good barometer to use when estimating closing costs on a loan. Are the costs usually
3% - 5 % of the amount of the loan? I am obtaining a loan through a mortgage broker co. and was wondering if closing costs will be much higher since they will add in their fees.
I have a mortgage company in addition to my investing enterprises.
Generally you are looking at 3%-5% depending on many factors.
Your pre-paids (interest, taxes,appraisal,etc.) are one part and the other part is your broker costs. The broker costs should not be more than 2 points and may be negotiable.
We do loans for investors and depending on the specifics charge a flat rate of $2700 on homes up to $300,000.
I imagine that there are some in your area that do the same.
You might ask around at your local reia and see who is giving investor specials when it comes to financing.
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