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 Sam
Site Admin
Joined: 21 May 2005
Posts: 281
Location: CALIFORNIA
117.49 Dollars($)
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 Posted: Fri Apr 02, 2004 5:51 am Post subject: Are closing costs included in the loan amount? |
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Some lenders may include some, or all, of the closing costs in the loan amount by agreeing to a slightly higher interest rate.
For example, Kris is interested in taking a loan of $400,000 for 5 years at 3% interest rate from Carole. The closing costs amounted to $2,000. Kris asked her to include the closing costs in the loan amount. She agreed to that by increasing the interest rate to 5%. |
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boggsc
Guest
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| Posted: Wed Nov 30, 2005 7:22 pm Post subject: buying a house |
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| what is earnest money and how is amount determined? Also, how are closing costs determined? |
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Jill
Guest
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| Posted: Wed Nov 30, 2005 7:38 pm Post subject: |
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Hi Boggsc,
Earnest money is given by the buyer to show that he is serious about the transaction. If the offer is accepted it becomes a part of the down payment, it is returned if the offer is rejected or it is forfeited if the buyer pulls out of the deal.
Thanks,
Jill |
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Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1602
Location: MASSACHUSETTS
149.70 Dollars($)
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| Posted: Wed Nov 30, 2005 7:55 pm Post subject: RE: |
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Hi Boggsc,
Welcome to MortgageFit Forums.
| Quote: | | what is earnest money and how is amount determined? Also, how are closing costs determined? |
Jill has already told about earnest money. The amount of earnest money depends on the type of property being purchased and local market condition.
For information on closing costs please visit the referred section.
God Bless You.
Thanks,
Samantha
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