- 3 min read
Ethan Ewing, President of Bills.com, gives you free information on mortgage closing cost.
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In this "Dollars & Sense" video, Ethan Ewing, President of Bills.com gives a brief overview on mortgage closing costs. There are some fees associated with closing costs and these include; Prepaid interest fees, 3rd party fees, and origination fees. For more information on mortgage closing costs, mortgage quotes, and a free mortgage quote fill out the short form on the right.
Hi, I am Ethan Ewing and welcome back to another episode of “Dollars and Sense. ” Today I want to talk to you briefly about mortgage closing costs. A Lot of people are going through refinancing right now, purchasing a home, the market is really right for doing that, but a couple of things to keep in mind when you start to get down to closing and you start to look at your closing cost, there are three types of closing costs that you will see on your mortgage.
One is what’s called pre-paid and those are going to be items like prepaid interest, things that you can’t avoid, they are non-negotiable across all mortgages they are going to be the same, so for the sake of this let’s just throw them out, okay.
The second is going to be 3rd party fees – third party fees are going to be things like title fee, escrow fees, appraisals, document prep, title fees, title exams rather, title insurance, anything that third parties do, not your bank or your lenders or your brokers, but third parties do to make sure that your mortgage is compliant and that you get it closed on time, roll those out too because those are going to be consistent across the board with all mortgages.
The last one is the one you want to focus on and these are generally referred to as origination fees or origination charges, these are going to come in the form of discount points, loan origination points, underwriting fees, processing fees, you will see them on today’s closing statements they are really called out separately, you will be able to see what these are. They used to be called junk fees, but there is a reason for these fees, banks have to make money, they have got to pay their people as well and of course they got to make a profit when they originate loans, so those are the fees you really want to focus on.
You look at your interest rate then you look at your origination fees, you may have origination fees in total of $3,500 dollars, ask your broker, ask your lender about those fees, that’s where you want to negotiate little back and forth, compare apples to apples, between loans you want to look at your origination fee. Hopefully that helps you make a better refinancing or mortgage decision and I will see you next time, thanks a lot.
Mortgage market update: the latest
No surprise that mortgage rates fluctuate. If you are thinking about purchasing a home or maybe considering refinancing your current mortgage, then you want to be up to date on mortgage rates.
Mortgage rates November 8, 2023
According to Freddie Mac, the 30-year mortgage rate for the week of November 8, 2023 is 7.50%. This represents a 26 basis points decrease from the previous week's rate.
Note: A basis point is equal to one-hundredth of one percent (0.01%). In numerical terms, if the mortgage rate changes by 20 basis points, it means the rate has changed by 0.20%.
According to Freddie Mac, the 15-year mortgage rate for November 8, 2023 is 6.81%. This is a 22 basis points decrease from last week’s rates.
Understanding the impact of mortgage rates on your finances
When it comes to determining your monthly payment, mortgage rates are a key factor to consider. Here are the avergage interest rates (APR) for November 14, 2023 based on Zillow data for borrowers with a high credit score (680-740) in the United States:
- 30-year conventional loan is 7.61%
- 15-year conventional loan is 6.74%
Based on the provided rates, a $279,082 30-year mortgage would result in a monthly payment of $1,972. Alternatively, a 15-year mortgage would require a monthly payment of around $2,468.
Simplify your mortgage journey: Shop around and get pre-approved today!
To make the home-buying or refinancing process a breeze, we highly recommend shopping around for mortgages and getting pre-approved. So, why not Check Out mortgage rates now for the best options available.