Closing costs account for a major chunk of change when it comes to purchasing a new house and obtaining a mortgage.
There are a few ways to help offset the costs incurred from this.
According to The Sun, at the end of the first week of April, the rate for a 30 year fixed rate mortgage jumped by .10%.
It went from 4.8% to 4.9%.
Applications for mortgages dropped 6% the same week.
Closing costs make up for a huge part of the payment, and include origination charges, services like credit report fees, and things like insurance fees.
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Here are a few ways you could save money on your mortgage when purchasing a home
See if the seller of the home will cover closing costs
When you put an offer in on the house, you could negotiate to see if the seller will pay the closing costs.
You could offer a quick closing in exchange.
You could also not make major demands for home renovations in exchange for closing costs.
Asking for a partial payment may be possible as well.
How do I get the best rate on my mortgage loan?
Lowering your mortgage discount points
One way people try to get a lower interest rate is by spending more with more with mortgage discount points.
Interest rates won’t always have a great impact on saving money over time though.
This is especially true if you refinance within 6 years.
If you use less points you could get a lender’s credit to lower your cost at closing.
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See if your lender can offer an incentive
By signing an incentive you could reduce closing costs.
They can cover things like appraisal fees.
They aren’t regularly given out and are offered on an individualized basis.
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