Is it possible to save on closing costs?

Certainly, once you get past the sticker shock. Closing costs are expensive. They can average between 3 to 5 percent of the total home purchase price. But here are a few ways to save:

  • Haggle with the seller. He may pay all or part of the closing costs based upon type of mortgage buyer selects.
  • Nab a no-point loan. You may have to pay a higher interest rate, but if you are strapped for cash and can qualify for a higher interest rate, you may find this type of loan can significantly reduce your closing costs.
  • Grab a no-fee loan. Although the fee is usually wrapped into a higher rate loan, it does offer one advantage – you get to save on the amount of cash you would need up-front.
  • Secure seller financing. These loans typically avoid the traditional fees or charges imposed by lenders.
  • Shop ‘til you drop for the best deal. Every lender has its own unique fee structure; you are bound to find one that works for you.

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