closing.jpg    Closing Costs

Closing costs are a primary expense in purchasing a home - commonly ranging between 3% and 5% of the purchase price of your home along with a down payment. It is necessary to pay all the individuals working to get your title, mortgage, appraisals, and other assignments finished for your home purchase. It is likely that you will not pay all the fees listed below, and certain lenders have their own names for specific fees or incorporate some fees altogether.


Below is a list of some of the standard fees and what they mean:

points.jpg   Points

A point equates to one percent of the entire amount of the loan being issued. For a $400,000 mortgage, one point would be $4,000. For a $550,000 mortgage, a point is $5,500.


There are two types of points:   


Origination Fee (Points): An origination fee, sometimes called origination points, contains all the work involved with getting you a loan by the lender. But this fee does not always incorporate all the work the lender performs. Ask what the origination fee entails and what supplementary fees you are responsible for paying.



Discount points:   Buying discount points reduces your long-term interest rate since you are pre-paying interest on your loan up front. The interest rate on a 30-year loan should diminish by 0.125-0.375 percent for each point purchased. This range depends on your lender, loan, and market conditions at the time. Buying discount points can be beneficial on homes you intend on staying in for over seven years. Otherwise, it is not worth it if you sell your home before the allotted time.


other.jpg  Other Fees

Certain lenders have a list of smaller fees while others charge lump-sum fees. Various fees charged by the county, title companies, and escrow firms or attorneys need to be paid along with lender fees. Variations in fees are present in terms of cost of the fees or what the fees are called. Listed are typical closing fees and what the fees comprise of.






Contact Info
Hanu Reddy Realty

Hanu Reddy Realty

16251 Laguna Canyon Rd. #100
Irvine  California 92618

Office: 949-450-8800 CA BRE Lic. 00873745 Email:

Social Media

Contact Us