As a Buyer, what can I expect my closing costs to be?
A reasonable "rough" estimate of your closing costs is 3% of the purchase price but that does not include any points that you might decide to pay to lower the interest rate on your loan. Most of the closing costs are lender related. If you were to make an all-cash purchase, your closing costs would likely be less than 1%. The best way to understand your closing costs with more accuracy is to get a "good faith estimate" (GFE) from your lender and GFE you will be able to review all the anticipated costs. As far as POINTS are concerned, this is totally up to you as the borrower. You can obtain a loan without points or with points and it will be up to you to decide which loan option is most attractive to you. I recommend that you ask your lender to quote you the interest rate with zero points and to quote you the interest rate with discount points and then you can compare the cost (points) to obtain the lower interest rate and see which loan you prefer- more upfront with a lower monthly payment or less upfront with a slightly higher monthly payment.
A reasonable "rough" estimate of your closing costs is 3% of the purchase price but that does not include any points that you might decide to pay to lower the interest rate on your loan. Most of the closing costs are lender related. If you were to make an all-cash purchase, your closing costs would likely be less than 1%. The best way to understand your closing costs with more accuracy is to get a "good faith estimate" (GFE) from your lender and GFE you will be able to review all the anticipated costs. As far as POINTS are concerned, this is totally up to you as the borrower. You can obtain a loan without points or with points and it will be up to you to decide which loan option is most attractive to you. I recommend that you ask your lender to quote you the interest rate with zero points and to quote you the interest rate with discount points and then you can compare the cost (points) to obtain the lower interest rate and see which loan you prefer- more upfront with a lower monthly payment or less upfront with a slightly higher monthly payment.
