"Can I Finance My Closing Costs into My Mortgage?"

Mortgage and Lending with Guaranteed Rate, Marin County, CA NMLS: 22343
RPM Mortgage in California
"Can I Finance My Closing Costs into My Mortgage?"
In the short video below, I work to answer the simple question that has a complex answer:  "Can I finance my closing costs into my mortgage?"
We, in the real estate industry, tend to take for granted that a good percentage of our clients can easily get confused BEFORE they even get to the closing table.  After all, depending on whether their most recent experience was a purchase or a refinance the answer can vary yet again on the possibility (and financial benefit) of rolling closing costs into a home loan.
And yes, the video does cover the basics, but if I could sum it all up, the answer to, "Can I finance my closing costs?," is best left at, "It depends."
  • It depends on your loan amount. 
  • It depends on your loan-to-value (LTV). 
  • And it can involve some other important considerations too. 
So take a quick look and let me know if you still have questions.


Remember, it is OK to finance closing costs in some cases.  It is never OK to not ask if your situation is one of them.  This question of, "Can I finance my closing costs into my mortgage?," is one of the most confounding ones out there, and I'm here to help you get to the bottom of it.  Simply call me at 877-270-5959, or send an e-mail to rspinosa@rpm-mtg.com.  Online pre-approval is always available at themortgagedictionary.com.



Robert J. Spinosa

Home Loan Professional
BRE: 01297944 NMLS: 22343

1058 Redwood Highway
Mill Valley, CA 94941

877.270.5959 Toll Free
415.367.5959 Cellular
415.366.1590 eFax



Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Debbie Reynolds 09/01/2013 10:47 AM
ActiveRain Community
California San Francisco County
The Lounge at Active Rain
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home loan
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Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience


GREAT informational video!  I'm Suggesting!  And you're so right.  In financing these days, no two scenarios are alike.  And that includes with the very same Borrowers sometimes!  Different times, different financing scenarios at those times.  It's never dull ...

You educate regarding Closing Costs ... and the possibilities that exist for Borrowers ... well here ... thank you!


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Aug 31, 2013 12:42 AM #1
Kathy Stoltman
Rockwood Realty - Ventura, CA
Ventura County Real Estate Consultant 805-746-1793

Thanks Rob,

I think this will be very helpful for many home buyers, especially first time home buyers. We do use the phrase "It depends" a lot in this business, don't we!

Aug 31, 2013 01:12 AM #2
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Rob, I'm not sure it is clear to me.  When you say include Closing Costs are you referring to the Seller paying that amount of Closing Costs and uping the loan by that amount or are you saying the Buyer can roll the Closing Cost in on their own?

Aug 31, 2013 01:39 AM #3
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent
Rob, I hear this question a lot and it doesn't have a simple answer. So good job with the video and the explanation.
Aug 31, 2013 01:54 AM #4
Rob Spinosa
Guaranteed Rate, Marin County, CA - San Anselmo, CA
Vice President of Mortgage Lending, Marin County

George --- good point.  I'm specifically only addressing buyer/borrower paid costs here and not including any element of seller credits.  The video covers hypothetical situations such as putting down 20%, then trying to "roll" closing costs into the loan.  If a buyer does that, he needs to realize that his LTV will then exceed 80%.  This is where I find that a lot of borrowers get tripped up.  I know what they're trying to do, but I have to advise that there are implications if they do it.

Aug 31, 2013 02:48 AM #5
Dan Hopper
Keller Williams Realty Downtown LLC - Denver, CO
Denver Realtor / Author / Advocate/Short Sale

Yes Rob, you are correct, it all depends on the type of financing and the amount down on the purchase!  Refi's need to be addressed in a different manner, as well.  Great video!

Aug 31, 2013 05:30 AM #6
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

This is a great way to get our point across, Rob.  Simple and straight-forward.  Even I understand it :)

Aug 31, 2013 09:48 AM #7
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Rob great information as always, hope you are having a relaxing Labor Day Weekend, Endre

Aug 31, 2013 10:58 AM #8
Bryan Robertson
Los Altos, CA

Having a video is a great way to get this message across.  At the "it depends" is better than 6-7 years ago when it seemed like anyone could roll their costs into the loan.

Aug 31, 2013 01:29 PM #9
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Good Morning Rob, you are right, it depends.  Unfortunately with all of the changes it isn't a yes or no answer.

Sep 01, 2013 01:22 AM #10
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

I actually never had an escrow where closing costs were covered by the loan. I'll keep it in mind. Thanks Rob for sharing this information. You never know, someone might be interested in such.

Oct 06, 2013 05:31 PM #11
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Rob Spinosa

Vice President of Mortgage Lending, Marin County
Can I Get a Jumbo Loan with 10% Down?
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