Home Loans Made Easy with Shauna Ratapu - Your Mortgage Person

Closing Costs: What are they and how much will I have to pay?

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This is the most frequently asked question of 2020, so I hope I can bring some clarity to it in 2021.

First off, closing costs in California can range from 2% to 5% of the loan amount.

They are divided into two main categories:

  1. Loan Costs
  2. Other Costs

    3. Loan Costs can include (but are not limited to):

    • discount point or lender credits for rates below or above par.
    • Origination charge (aka the fee my company charges)
    • underwriting fee
    • appraisal fee
    • credit report
    • flood certification
    • third party processing fee (if any)
    • Escrow fees such as: Document prep, mobile notary, Title insurance, recording fee, settlement or closing fee.

      • Other Costs can include (but are not limited to):

      • Taxes and other government fees - such as recording fees.
      • Prepaids - such as Homeowners insurance premium or property taxes if they are due at or around time of closing. This could also include Prepaid interest or MIP (Mortgage Insurance Premium).
      • Initial escrow payment at closing - if you have an escrow account, you will need to have 2-7 months of Insurance and Property taxes in here (depending on when in the year you close your loan compared to when these are due).
      • Other charges

        • #closingcosts

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        Home Loans Made Easy with Shauna Ratapu - Your Mortgage PersonBy Shauna Ratapu