What are Closing Costs and Why Do They Differ?

Buying or refinancing a home can seem like an intimidating task. The application process alone can take a lot of time and effort, and getting final approval form an underwriter can sometimes feel like an uphill battle. On top of that, closing costs can make even the most attractive interest rates seem less appealing. So, what exactly are closing costs and why do they differ from lender to lender?

With traditional lenders, usually the borrower (you!), pay for closing costs. However, with CapCenter's "Zero Closing Cost" Offer, CapCenter covers - or eliminates - you loan's standard closing costs. These "standard" costs include things like the home appraisal, loan origination fees, and title search fees. Visit our calculator to see a more comprehensive list and estimate your potential savings.

A few charges cannot, by law, be covered by lenders. These will always include escrow deposits and prepaid interest. Exact amounts for escrow and prepaid interest depend on when property taxes and homeowner's insurance are due and when a loan closes. 

Some loans require fees outside of standard costs, such as a cash-out refinance, where a borrower pulls some of the equity out of their home, or a situation in which the borrower pays points to lower the annual interest rate. The cost of these fees are set by each lender but often dictated by financial market conditions.

While some fees likes taxes are unavoidable, other expenses and loan costs can vary from by lender and service provide - and with CapCenter, can be covered for you. This can help you save thousands of dollars, leaving more money in your pocket for other important expenses. Simplify the process of obtaining a mortgage and save money by choosing a zero-closing cost loan with CapCenter.