Home Loan Closing Costs May Be Surprising
by: Charles Essmeier
The whole purpose of taking out a mortgage is to borrow the bulk of the purchase price of a house. Most houses sell for prices that are well beyond the amounts the people keep in their bank accounts, so taking out a loan to buy a home is pretty much inevitable. And yet many homebuyers are astonished to discover just how much cash they are required to bring with them when it comes time to close on the loan.
It does seem rather counterintuitive that one would have to bring cash to a loan closing. After all, the purpose of the loan is to receive money, isn't it? And yet, the costs associated with taking out a loan must be paid and convention dictates that those costs be paid when the loan is signed.
If you are not expecting it, a call from a loan officer, saying, "Closing is tomorrow. Don't forget to bring a cashier's check for $15,000" can be pretty shocking. Here is a short list of things a buyer may be expected to pay, in cash, when closing a loan:
# The down payment ? This is the portion of the price of the house not covered by the loan. In years past, this figure might have been 20% of the purchase price or more. Now, in some cases, there may be no down payment at all.
# Loan origination fee ? The fee that the lender charges to create and process the loan. This fee is typically about 1% of the loan amount.
# Appraisal fee ? The fee charged to assess whether or not the house is worth the seller's asking price. This fee may run $300-500, depending on the market.
# Property inspection fees ? A charge of a few hundred dollars to assess whether the home is structurally sound. This may cover an inspection of plumbing, electrical or sewage systems as well as a foundation or roof inspection.
# Private mortgage insurance ? Charged on loans that cover 80% or more of the purchase price, this insurance protects the lender from default by the buyer.
# Miscellaneous fees ? This covers copying documents, postage, courier fees, notary fees and other miscellaneous office expenses.
All of these fees can add up to quite a lot of money. The well-informed buyer would do well to ask, in advance, just how much money he or she will be expected to provide at closing. As the sum can easily amount to 5% of the purchase price or more, most buyers will sufficient notice to gather the funds in order to have them ready on time. The last thing any buyer wants is to be unable to close because he or she cannot provide the proper funds at closing. It is best to be prepared.
About The Author
©Copyright 2005 by Retro Marketing.
Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.homeequityhelp.net, a site devoted to information regarding home equity lending.
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Life Insurance Report From Lifesearch Females Buying Protection Has Doubled Since 1999
Life Insurance Report From Lifesearch Females Buying Protection Has Doubled Since 1999
by: Kevin Carr
In 1999, just one in five of LifeSearch?s customers were female, however, figures for 2004 and 2005 so far show that the number has now increased to 39%.
With more than 150,000 lives covered, the information represents a large number of customers and shows that many more females are thinking about their protection needs.
Commenting on the reasons for the increase, LifeSearch Policy Adviser, Linda Tyson said ?We attribute this increase to the growing awareness of the importance of protecting the financial stability of the family. More and more women are either the main or the only breadwinner and are realising the importance of protecting their incomes.?
Comparatively, the cost of life cover is lower for females as the life expectancy is higher.
While life expectancy for both men and women...
Life insurance > Life Insurance Report From Lifesearch Females Buying Protection Has Doubled Since 1999
Holiday Loans ? The Freedom To Celebrate Life When And Where You Want
Holiday Loans ? The Freedom To Celebrate Life When And Where You Want
by: Steve Clark
Someone wise once said, ?Every day is a celebration on this earth?. Do you remember there was a time when you used to carry flowers home??..That was the time when you used to celebrate. Today everyone is too caught up in work and clich?d routines to go out and see what life has to offer. Have you realized how many days it has been since you took a break! There could be nothing more rejuvenating than a holiday. Holiday loans can enable you to do exactly that and more.
Holidays are something you can?t fit in your budget and usually not everyone has savings funds for holidays. Holidays require a lump sum. With the rising cost of vacations, many resort to postponing plans to some better financial timing. For them holiday loans is the silver lining. Holiday loans come in such a variety of packages with such a wide ranges of interest, amounts and terms.
Personal...
Holiday Loans ? The Freedom To Celebrate Life When And Where You Want
Life insurance > Holiday Loans ? The Freedom To Celebrate Life When And Where You Want
Life Assurance
Life Assurance
by: Gary Tallon
Planning for your future life can seem like a time consuming burden when you have a young family. After all, where do you find the time in your life to think about things like life assurance while you're struggling to keep work and home life pressures in check? Our departure from this life though cannot be predicted. You and your partner may live a good life to a ripe old age, or you could pass away tomorrow. If the worst were to happen to you, where would that leave your partner and your dependants? Would they be financially secure for the rest of their life after their loss and not have to worry about paying the mortgage? If not, then a life assurance policy is a must.
Life assurance for life and death
Life assurance, also known as life insurance, is an assurance policy that pays out a lump sum to a named person(s) in the event of your death. This type of assurance policy is inexpensive to maintain, assurance...
Life Assurance
Life insurance > Life Assurance
Which low interest credit card is right for me?
Which low interest credit card is right for me?
by: Samuel Pety
The best low interest credit card is one that charges a low interest rate and does not have any hidden costs. Very often, card users tend to be indiscriminate with their cards during the introductory period and are in for a shock when the rates jump at the end of the period. A low interest credit card should continue to function at a low interest rate even after the introductory period is over. Therefore, while going for a low rate credit card, one should not get too enamored by the introductory offer but should also read the fine print.
By transferring balances to a low interest credit card, credit card users can save money, particularly those who are in the habit of carrying balances forward every month. One should confirm that along with the low balance transfer rate, the balance transfer fee too is not high. Credit card companies are not above trying to make up for the low rate...
Which low interest credit card is right for me?
Life insurance > Which low interest credit card is right for me?