What are some average closing costs for your home mortgage?
If you are in the market for a new mortgage there are some average closing costs that you should be aware of.
Keep in mind these are averages, but it will give you a good base so you know you are not being ripped off by the man.
- Origination and Points: Average about 1% – 3%.
- 3rd Party Fees: Total can be about $1,800 up to $3,500. This is a wide range, so be sure to compare 3rd party fees from loan officer to loan officer. 3rd Party fees include: (some fees only apply to purchases and some only to refinancing. These are the normal fees you may see on your Good Faith Estimate (GFE), but this list is not complete. Be sure to review the fees on your loan carefully.)
- Appraisal – $400
- Loan application fees – $300
- Credit Report – $25
- Inspections – $150 – $300
- Recording fees – $45 – $90
- Escrow Fees – $400 – $3,000
- Fees Will Be Updated As Needed.
Remember there are certain fees that are negotiable like the origination and points. Typically Loan Officers will transfer points on the front to points on the back. Points on the back of the loan are called YSP (yield spread premium). What is YSP?
Educating yourself before choosing a mortgage can save you big money once you are ready to sign the papers.