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Can closing costs be rolled into the mortgage?

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Guest	Posted: Tue Feb 15, 2011 11:11 am    Post subject: Can closing costs be rolled into the mortgage? Like 0 Dislike 0 Can closing costs be rolled into the mortgage?
gmakerley Community Mentor Joined: 09 Nov 2007 Posts: 12376 Location: bloomfield, ct 58.49 Dollars($)	Posted: Tue Feb 15, 2011 2:03 pm    Post subject: Like 0 Dislike 0 Are you referring to a purchase transaction, or a refinance? With most refinances, you can roll costs into your loan; however, that is dependent upon the equity you have in the property as a rule. For purchase money mortgages, you'd not be able to do that - closing costs would need to come out of pocket. _________________ George M. Akerley Mortgage Underwriter/Consultant Word of Excellence- Writing/Editing/Proofreading 860-221-5044
jveenstra Community Expert Joined: 10 Nov 2008 Posts: 1310 Location: River Edge, New Jersey 274.62 Dollars($)	Posted: Tue Feb 15, 2011 3:11 pm    Post subject: Purchase Like 0 Dislike 0 George is correct. To add a little more: If a purchase: 1. Closing costs are not "in the mortage". You may be able to make a lesser down payment which results in a higher mortgage. You still pay cash for the closing costs, but, your mortgage is higher so you have more cash to pay the closing costs. But, you may not be able to make the down payment smaller if you are already at the minimum down payment or if making a smaller down payment then requires you to have Private Mortgage Insurance which you may not have had before the smaller down payment. 2. The lender could raise the mortgage interest rate and pay some or all of the closing costs. 3. You may entice your Realtor to pay some of the closing costs. 4. You may as part of the Purchase Offer and Contrcat get the seller to pay soe or all of the closing costs. 5. You may be able to do two or more of the options above to pay some or all of closing costs.. _________________ John Veenstra, Sr Mortgage Consultant Approved Funding Corp Licensed NJ NY CT PA 201-833-0123x278
gmakerley Community Mentor Joined: 09 Nov 2007 Posts: 12376 Location: bloomfield, ct 58.49 Dollars($)	Posted: Wed Feb 16, 2011 10:01 am    Post subject: Like 0 Dislike 0 Well done, John...I completely overlooked seller-paids and lender-paids that give buyers options that they often don't hear about otherwise. I haven't heard of too many realtors being "enticed" into providing funds for costs; on rare occasions when it came down to a deal being lost for lack of funds, yes; but that's more an emergency than an enticement. I'm glad you had my back though. _________________ George M. Akerley Mortgage Underwriter/Consultant Word of Excellence- Writing/Editing/Proofreading 860-221-5044
Sharon3 Guest	Posted: Mon Mar 19, 2012 3:41 pm    Post subject: closing costs in the refinance loan Like 0 Dislike 0 In the refinance, is it legitimate to NOT offer to roll the closing costs into the loan? Is it common for borrowers to pay cash for closing costs on a refi?
smithsussane Joined: 18 Sep 2008 Posts: 10439 Location: Alaska 985.83 Dollars($)	Posted: Tue Mar 20, 2012 1:40 am    Post subject: Like 0 Dislike 0 Hi Sharon! Welcome to forums! It is quite common for the borrowers to pay the closing costs at the time of closing. Not all lenders offer the option of rolling in the closing costs into the refinanced mortgage. Feel free to ask if you've further queries. Sussane

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