Closing Costs on a Home

Closing Cost Overview With Dallas Top Mortgage LenderClosing Costs Overview

How much are closing costs when buying, selling, or refinancing a home? Here’s a breakdown the home closing costs, prepaids, and money due at closing. There are three components that make up the monies due at closing:

  1. Down payment (or equity for refinances)
  2. Cost for the home loan (i.e. the fees)
  3. Prepaids

There are a variety of different methods to pay for closing costs and it’s our job as mortgage pros to help you determine which is right for you.

Down Payment

The amount of the down payment is determined by the borrower. Check out our section on mortgage down payment for options and recommendations.

Closing Costs

The closing costs are the actual fees for the home loan and will vary depending on the purpose, product, and loan structure. The reason we don’t include the down payment or the prepaids as “closing costs” are because those aren’t technically fees. The down payment is equity in the home and most of the prepaids would be paid regardless if you paid cash for the home or acquired a mortgage. See “Closing Costs” below for more details.

Prepaids

The mortgage prepaids consist of property taxes, home owners insurance, HOA dues and transfer fees, and per diem interest. The amounts vary based on a variety factors: program, loan structure, etc..

Closing Costs Overview for PurchasesClosing Costs

Closing Costs for Purchasing a Home

Closing Costs for Windsor Homes

Closing Costs for a Second Lien (Second Mortgage Details)

Mortgage Points

Closing Costs Overview for Refinances

Prepaids & Escrows

Mortgage Prepaids

Escrow Accounts Calculations for Purchases

Prepaids and Escrows for Refinances

 

Closing Costs Overview For Selling A Home

Costs for Selling a Home

Seller’s Net Sheet

 

 

 

 

Prepaids For A Mortgage Home Loan With Top Mortgage Lender In Dallas 200 x 200
Mortgage Prepaids When purchasing or refinancing a mortgage home loan there are Closing Costs and there Prepaids. Closing costs are fees incurred for purchasing the property and prepaids are costs incurred for home ownership. In other words, even if you paid cash for a home you would still owe the prepaids (with the exception of per diem interest). For a purchase loan the prepaids consists of: the per diem interest, the first year’s insurance premium, ...
Read More
How To Compare Mortgage Lenders with the best mortgage broker in Dallas
Are you wondering how to compare mortgage offers? We believe competitive loan terms are mandatory. Ignorance is not bliss and what you don't know can hurt you (and cost you a significant amount money). Compare Mortgage Offers So you want to get a home loan but you're unsure on how to compare mortgage offers between lenders. You could call a million mortgage brokers to shop but it can be difficult to compare apples to apples ...
Read More
New Construction Closing Costs for Best Builders in Dallas
New Construction Closing Costs This page specifically covers the additional closing costs that may be incurred when purchasing a newly built home in Texas. This page is an addendum to our Mortgage Closing Costs for Purchasing a Home which breaks down the other $2,800 of "base" closing costs. Four Additional Costs For New Construction There is a price for that new home smell. There are potentially four additional fees that may be incurred when purchasing ...
Read More
How To Pay For Closing Cost when buying a home Plano Texas
How To Pay For Closing Costs When structuring a mortgage home loan there are four ways to pay for the mortgage closing costs: pay cash at closing, roll the costs into the loan, increase the interest rate, or do a combination of the aforementioned methods. When lenders offer "no cost" loans or "low costs" loans they are either rolling the costs into the loan and/or rolling the costs into the interest rate. How to Pay ...
Read More
UNDERSTANDING DISCOUNT POINTS WITH MORTGAGE MARK
What is a point? Mortgage points are closing costs for a buyer that are a percentage of the loan amount. One point equals one percent. Who pays for the mortgage points depends on the purchase contract. The buyer pays the mortgage points in most cases. Likewise a seller can pay for them via seller concessions. Mortgage Points There are two types of mortgage points: origination points and discount points. Origination Points: An origination point is a fee charged ...
Read More

 

 

 

Closing Costs Payment Methods

Closing Costs Payment Methods

How To Pay For Closing Costs When structuring a mortgage home loan there are four ways to pay for the mortgage closing costs : pay cash at closing, roll the costs into the loan, increase the interest rate, or do a combination of the aforementioned...
Compare Mortgage Offers

Compare Mortgage Offers

Are you wondering how to compare mortgage offers? We believe competitive loan terms are mandatory. Ignorance is not bliss and what you don't know can hurt you (and cost you a significant amount money). Compare Mortgage Offers So you want to get...
Mortgage Points Explained

Mortgage Points Explained

What is a point? Mortgage points are closing costs for a buyer  that are a percentage of the loan amount. One point equals one percent. Who pays for the mortgage points depends on the purchase contract. The buyer pays the mortgage points in most cases. L...
New Construction Closing Costs

New Construction Closing Costs

New Construction Closing Costs This page specifically covers the additional closing costs that may be incurred when purchasing a newly built home in Texas. This page is an addendum to our Mortgage Closing Costs for Purchasing a Home which breaks...
Mortgage Prepaids

Mortgage Prepaids

Mortgage Prepaids When purchasing or refinancing a mortgage home loan there are Closing Costs and there Prepaids . Closing costs are fees incurred for purchasing the property and prepaids are costs incurred for home ownership. In other words, even...
Homeowners Insurance

Homeowners Insurance

Homeowners insurance protects a homeowner (and lender) in the event of property damage or loss resulting from an "event."   It covers four main areas: interior damage, exterior damage, loss/damage of personal belongings, and injuries sustained o...
Property Tax Basics

Property Tax Basics

Property taxes are are a part of home ownership and they fund the city, county, hospitals, and schools.  Property taxes are paid directly to the taxing authorities via the mortgage's  escrow account  held by the mortgage servicer or by the homeowner if...
Homestead Exemption Overview

Homestead Exemption Overview

https://youtu.be/zfCaPvhqVsc The information below is generic information regarding Homestead Exceptions for counties located in north Texas. Check with your county for specific details on amounts and the process for filing your homestead exemption.  ...
Property Tax Deductions: Over 65 and Disabled Person

Property Tax Deductions: Over 65 and Disabled Person

The Homestead Exemption is the primary source of property tax deductions on a home. This article addresses the Over 65 Tax Exemption and the Disabled Person Tax Exemption for counties in North Texas. Check out our Homestead Exemption page for details...
Mortgage Escrow Account Overview

Mortgage Escrow Account Overview

A mortgage escrow account is money held by a mortgage servicer on behalf of the homeowner. An escrow account contains the homeowner's funds that are used to pay the annual property taxes and homeowners insurance. These funds technically belong to the...
Escrow Account Calculations for Purchase Loans

Escrow Account Calculations for Purchase Loans

Check out our Escrow Account Overview as a precursor to this article about escrow account calculations. You may also want to check out our page on Escrow Analysis and Rebalance  to learn about the escrow evaluation and re-balancing that takes place ...
Refinance Escrows

Refinance Escrows

Prepaids and Escrows For Refinances There is a difference between fees paid for closing (i.e. Closing Costs ) and Prepaids paid at closing. Fees paid are the cost to do the loan; prepaids are items you're paying regardless of whether you refinance...
New Construction Escrows Explained

New Construction Escrows Explained

New Construction Escrows New construction home loans that have an Escrow Account could potentially experience a dramatic increase in a monthly mortgage payment after an Escrow Analysis is preformed depending on how the property tax portion of the...
Escrow Analysis and Rebalance for Homeowners

Escrow Analysis and Rebalance for Homeowners

Escrow Analysis And Rebalance If you currently have a mortgage AND have an Escrow Account then this page may be applicable to you. You may also want to check out our page on New Construction Escrows if you bought (or are buying) a newly constructed...