The Mortgage Tools Series is BACK: Home loan closing costs- Fees vs. Costs- What’s the difference?

How do you explain to your real estate client what are prepaid items and what are closing costs for a mortgage loan? When negotiating a contract in this current buyers market it is common the "closing costs" are negotiated to be paid by the seller of the property. The confusion lies in what is a reoccurring closing cost and a plain closing cost.There is a difference and it will help the experience of buying and selling real estate if everyone is on the same page. As a Mortgage Broker we deal with questions of closing costs on a daily basis. So let's start with what are prepaid items of a mortgage loan and what are generally considered not reoccurring closing costs. These are charges that will follow you as long as you own the home.

Prepaid charges are most commonly....

 

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The Mortgage Tools Series is BACK: Home loan closing costs- Fees vs. Costs- What's the difference?