Mortgage Closing Costs Can Be Negotiated – Here’s How

When you buy a house, you can pay your mortgage fees at closing - or you can negotiate to have your lender pay your fees instead.

June 30, 2020 by Dan Green

Did you know: What you’ll pay in mortgage closing costs is typically within your control? That comes as news to most people.

Here’s how it works.

With every mortgage, there are costs. You pay costs for people, for technologies, and for the various services rendered. And by law, those costs must be the same for every loan. Lenders can’t charge different fees to different consumers for the same service provided because that kind of practice is discriminatory.

As a home buyer, though, how your costs are paid is up to you. You retain control.

Have you ever heard of points? They’re the one-time fee for access to lower rates than you might otherwise be offered. Points are sometimes called “discount points” because they get you “discounts” against your mortgage rate, but they cost money.

Well, there’s a reverse of points, too.

Instead of paying additional fees for access to lower rates, you agree to pay fewer fees in exchange for taking a higher rate. This reverse points setup — which lenders call REBATE — can usually be used to lower your closing costs completely and it’s common for buyers to make use of at least some form of closing cost credit with their loans.

Use the chatbox below to let us know what you think about closing costs, and how we can help you choose what’s best.

And, happy homebuying.

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