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Old 06-02-2009, 05:10 AM
 
33 posts, read 131,857 times
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What are the things you can to minimize your closing cost? How helpful is your attorney on this?
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Old 06-02-2009, 06:08 AM
 
Location: Wake Forest, NC
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Closing costs will be paid, the question is how. No one works for free so there is no magic formula or program to eliminate these fees no matter how it is presented to you.
Option 1- wholesale rate where you pay all closing costs including an origination fee.
Option 2- slightly higher rate where you pay all closing costs except origination fee.
Option 3- rate even a little higher and you pay no closing costs or origination fee.
This is here in NC where our generic closing costs are comparitively low- no fees to goverment besides about $80 recording fee. These options are also based on loan amount- the higher the loan the lower the spread between rates.
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Old 06-02-2009, 10:35 AM
 
Location: Niceville, FL
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Check with your local credit unions if you've got one. Ours offers very competitive mortgage rates, and essentially no internal closing costs. (though you still pay the appraiser, state transaction tax, title insurance, etc. like everyone else)
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Old 06-02-2009, 06:28 PM
 
Location: Plano, Texas
1,675 posts, read 6,622,307 times
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Getting a mortgage rate is like buying anything else, you can pay more and get a better rate. When lenders issue rate sheets there is not just one rate, there is a range. Todays range was from 4.75% to 6.5% with one lender i use. You can choose to pay less costs but your rate will be higher. However, at the end of the day you will pay all costs one way or the other. Either up front or over time with a higher rate.

I find it very common for the average consumer to not see the forest for the trees. If you are planning on keeping a home for more than 3 years, it makes sense to pay all costs including 1 point loan origination/discount/broker fee.

Also, work with a broker due to brokers have to disclose all fees and what they are making. When working with a direct bank they dont have to. For example, when i run credit on a single person it costs $12.72 which i pass along to my client as a fee. I cant say it costs $50 but pay only $12.72 and make the spread. When working with a bank, they can charge whatever they want and i have seen some gfe's showing credit reports costing that much.
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