DO YOU THINK CLOSING COSTS ARE ONLY $250.00?

Thanks Brian, sharing in small bites is effective with buyers I think.

Randy, I like how you think. It takes some educating about rate vs cost. Thanks for putting options out front!

Cindy, sometimes it does feel like no rhyme or reason. What makes it even harder is the powers that be who deem two ways of demonstrating costs, whether  one is a broker or banker. Very confusing for home owners/buyers. 

Carolyn, you are lucky! I drive by a savings and loan several times a week with there $250 closing cost sign displayed. 

Rob and Gary, you are right there is not enough comparision of cost vs reward.

David, your are correct it is an option, and yes  many loans don't make it past 10 years. Break even on these situations can be as low as 2 yrs, and besides rates are and have been at all time lows! Very few are going to refi out of them. 

You are so right about education, Ralph. When they have the tools they can make wise choices.

Thanks Travis, tell them to break it down when you see it. 

Steve, thanks for that info. If a buyer rolls out of that house in a couple of years they may want/need that closing cost money. 

Hella, of sorts that option is available (at least to brokers). I demonstrate the costs of a higher rate or lower rate. I'm not sure that much of a discussion is taking place when someone is being really sold on low closing costs.

Amanda, Jared, thanks. I'm glad I did too.

Brenda, Cindy and Lora have similar comments. I consider often the housing collapse and how many consumers did not stop and think WHY they would be getting so much better of a rate than someone they knew. I do run into it a lot though. Someone will call and tell me their friend got a really awesome rate. Often that friend either did a 10 yr or 15 yr note, or sometimes an adjustable. It is important for real estate agents and lenders to have a good, working realtionship where we know we are referring trusted parties.  And buyers, they need to listen.

Kelly, I agree, we need to educate. Buyers need to feel comfortable that they understand the basics at least.

Praful, your thinking supports my oft made comment to buyers "there is very little difference in rate availalbe, the difference is how it is offered". Anyone can give $250 in closing costs, but there is a price.

Lyn, I have to say you speak the truth. Buyers want to know what is my payment and how much money do I need. Beyond that we try and educate them to make a wise choice because there are options. 

Marte, costs have gone up a lot due to Fannie, Freddie and FHA fees. I've not seen a change in several years with title company fees (for their services). Apprasials went up with the advent of HVCC/AIR.

Good deal, Pam, keep it up! 

Ric shopping is a great idea. $750 is pretty low, considering appraisals cost $475 in our market. Some lenders, not as much as there used to be, don't require title insurance.  That can be a savings, but if the home buyer has title problems down the road, it turns out to not be a bargain.

Thanks Bob!