Connect

Find us on...

Dashboard

Log in using...

January 2017

Found 3 blog entries for January 2017.


Written by Robert H. Ruth

Over the past 2 weeks I have tried to provide an in depth explanation of what closing costs and prepaid expenses are, and what they typically cost for a $375,000 purchase with 20% down payment and a mortgage loan of $300,000.

In this final installment, I want to tie closing costs and prepaid expenses together and show you the total amount of money our hypothetical borrower would need to bring to the closing table. This is a breakdown of what this transaction would look like for our borrowers:

Sales Price

$ 375,000.00

Closing Costs

       4,219.00

Prepaid Escrow Expenses

       3,723.95

Total Acquisition Cost

$  382,942.95

371 Views, 0 Comments

Written by Robert H. Ruth

Last week I began by breaking down the typical settlement charges known as closing costs, and offered an explanation of what these charges actually cost and what services are obtained or performed for each individual item.  As a brief recap, closing costs are the expenses incurred by a home buyer to transfer the title of the property from the seller to the buyer and secure the mortgage financing on the property.

However, closing costs are not the entire story. There are other settlement expenses which serve a different purpose, and they are known as prepaid escrow items. In this article we will look at prepaid expenses in detail, why they are collected and how they are used in your mortgage.

Before I start, it

204 Views, 0 Comments

Written by Robert H. Ruth

This is one of the biggest questions I answer on a routine basis, and with good reason. Every borrower who is looking to finance the purchase of a home needs to know the answer to this question, and so, this will be a 3 part explanation of what closing costs are and how they work into a loan purchase transaction.

When you purchase a home and take out a mortgage to finance it there are certain expenses incurred by the buyer with the purchase and closing, known in the industry as Settlement Charges. There are two components of Loan Settlement Charges:

  • Closing Costs, which are the charges required to transfer the title of the property from the seller to the buyer, and secure the mortgage financing on the

443 Views, 0 Comments