Closing costs are the amount you’ll need on top of your down payment to buy a house.

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective. Terms apply to offers listed on this page. Read our editorial standards.

The average closing costs in 2021 were $3,860 without transfer taxes, according to ClosingCorp data. 
When including transfer taxes, that amount increased to $6,905.
These costs cover underwriting, title search, and loan fees, and are on top of the down payment.

The average closing costs required to buy a home in the US  in 2021 were $6,905 including transfer taxes, and $3,860 excluding transfer taxes, according to data from mortgage technology company ClosingCorp.

Transfer taxes are a tax that some state or local governments charge when ownership of a property is transferred from one person to another. The buyer or the seller may pay this cost, depending on where you live.

Closing costs are a major expense to consider when shopping for a mortgage, or considering buying a house. Your closing costs can add significantly to the amount you need to buy a home, and are an expense that’s separate from your down payment. 

It is possible to get a loan without closing costs, but often, the costs roll into the life of the loan. You may find that a loan with lower or no closing costs has a higher interest rate, which could make costs higher than simply paying up front. A lender could also add closing costs to the loan’s principal, which increases the total amount you’ll …read more

Source:: Business Insider


(Visited 1 times, 1 visits today)

Leave a Reply

Your email address will not be published. Required fields are marked *