What is included in “closing costs” in a mortgage loan and are they negotiable?

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  1. Reply
    May 1, 2011 at 12:12 am

    Closing costs are set. Normally you will have title fees, underwriting fees, ect.

    If you have a reserve account, that is your money and a broker wont help you with that fee.

    Lets take an example. You are refinancing a home for 200K. Your broker is charging you 1% origination fee and the are getting 2% on the YSP (yield spread premium). This means the broker has 6,000 to play with the title ect.

    Everything is negotiable, they might even pay your reserve account. The point is simple the bank pays them, you pay them, where does the money go?

    Any legit loan officer will be upfront and show you what they are making, YSP and Upfront. If they dont get a new one. When somebody asks me for a 250K loan I say I will do it for 3500. You can do whatever you want with the rest of the money. Either way I walk away with 3500. I dont care. I just do it how they ask me.

  2. Reply
    May 1, 2011 at 12:36 am

    You can have zero closing costs too. Depends on how you bargain and how much is your loan amount. If you have a good FICO, most lenders will charge you less. I can help you close it with a zero fee if you have a good downpayment or equity and more than 650 score.

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