How Much are Mortgage Closing Costs?
The amount you pay in closing costs will vary but commonly depends on three key factors:
- The price of the home
- The location of the home
- Whether you’re buying or refinancing
The specific closing costs and fees you’ll pay depend on your lender, the type of loan, the terms of the real estate transaction, and the state you live in. On average, closing costs may be about 2 – 5% of your loan amount. The fees will appear on the Good Faith Estimate that lenders must provide as part of the loan application process.
Marine Credit Union offers a variety of free budgeting and financial planning tools. Use our free online calculator to calculate your home closing costs.
If you have low or bad credit, these costs can add onto an already sensitive mortgage repayment situation. It is important you understand the entirety of your financial responsibility for a mortgage before taking out a mortgage loan with bad credit.