Examine Closing Costs When Shopping Arizona Mortgage Rates

Closing costs add up and can cause a little bit of sticker shock when you finally make your home purchase. Closing costs are also a place where you do a little negotiating so its best to come to the table with a little knowledge under your belt.

Arizona Mortgage Rates : The Appraisal Fee

The appraisal fee is a charge which varies. It pays for a statement of property value as assessed by the lender’s staff. This protects the lender and gives them a gauge in determining whether your property is enough to secure your loan. The appraiser inspects the house and neighborhood and reviews home values in the area. You can negotiate who pays this price, the home buyer or seller or at times it will be included with your mortgage insurance application fee.

Arizona Mortgage Rates : Interest

Normally you will be charged the interest that has or will accrue from the date of settlement to the first monthly payment. This fee will be collected on your settlement date.

Arizona Mortgage Rates : Loan Discount

The loan discount is often referred to as “points”. This is a one-time charge which adjusts the yield on the loan to the current market conditions. It offsets constraints placed on the yield by either state or federal regulations. A point equals one percent of the mortgage amount. These points can often be negotiated.

Arizona Mortgage Rates : Mortgage Insurance Premium

Mortgage Insurance will protect the lender in case you default on the home loan. With this insurance the lender will be more likely to give you a larger loan which will reduce the amount required for a down payment.

Arizona Mortgage Rates : Other Charges

These are just a few of the fees that are tacked on to your loan and called closing fees. Make sure to review the other fees such as; Assumption Fee, City and County Property Taxes, Credit Report Fees, Hazard Insurance and a Hazard Insurance Premium, Lender Inspection Fees, Mortgage Insurance Application Fee, and Reserves Deposited with Lenders. Some or all of these fees may apply in your case. Reduce your sticker shock by exploring your options and becoming familiar with closing costs.