Negotiating Closing Costs?
I am currently refinancing my 1st & 2nd mortgages into one so I can pull the equity out of my home and use it to purchase an investment property. The closing costs are $3,100, what if anything in the closing cost can be negotiated.
There are some people that say anything is negotiable. You probably are dealing with several vendors that are providing services for which they will bill you. If you will be using the same team to get financing on the properties you acquire, you might have some leverage and get "discounts" since you are going to do at least two loans.
Perhaps you are already doing this, but I usually get enough cash in the refi to cover closing costs. This way the closing costs are paid over the life of the loan with a very small incremental monthly payment. I would tend to do this rather than beat up the people on price who will be working with me and who will be giving me service as I grow my portfolio.[ Edited by edmeyer on Date 05/17/2005 ]
The think that you can look for a discount on is title insurance & apprasials if you keep using the same companies.
cjmazur,
I spoke with my broker yesterday and he has agreed to drop the appraisal costs.. I will take a shot at the Title Ins.
Thanks for your advice.
Here in CA we do not have any say in the fees others charge. Title insurance is somewhat regulated so they are all very close. If the home has had a loan in the last five years it is common to get a 20% discount but thats about it. I do not jack up their prices to make money on others services either (like a mechanic selling spark plugs at $5 each) If he is negotiating the appraisal prce he is probably paying part of it for you out of his commission. Typically what Ed said is solid advice. It takes money to make money. A broker that does you right is worth paying. In the end they should work hard to find the best loan for you and help you to make money in the long run...