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jaysee00
LIF Adult
Member since 3/06 1647 total posts
Name:
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Question
Opinions, please. Does anyone know if it is better to roll the closing costs into the price of the mortgage? Or is it better to pay it seperately? I will be talking to our mortgage person about this, but I kind of wanted to see what the concensus is. Thanks in advance!
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Posted 3/19/06 9:15 PM  |
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charon54
My two boys!
Member since 5/05 7279 total posts
Name:
Rebecca
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Re: Question
Rolling the costs into the mortgage would mean that the seller would have to accept a seller's concession and raise the price of the house. This means that the appriasal would have to come in higher which usually doesn't happen.
DH is a bank manager and this was his take on it. Feel free to FM with any questions.
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| Posted 3/19/06 9:32 PM |
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jaysee00
LIF Adult
Member since 3/06 1647 total posts
Name:
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Re: Question
Thank you for the response.
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| Posted 3/19/06 9:34 PM |
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Diana1215
Living on a prayer!!!
Member since 10/05 29450 total posts
Name:
Diana
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Re: Question
It really depends. If the house will appraise for the higher amount without any problems then it shouldn't be an issue. If the house doesn't appraise for that amount you will have to come up with the additional $$.
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| Posted 3/19/06 9:39 PM |
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Redhead
You Live, You Learn
Member since 5/05 31871 total posts
Name:
Jennifer
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Re: Question
Posted by charon54
Rolling the costs into the mortgage would mean that the seller would have to accept a seller's concession and raise the price of the house. This means that the appriasal would have to come in higher which usually doesn't happen.
DH is a bank manager and this was his take on it. Feel free to FM with any questions.
yup...
IMO itis best, if you can, to pay the closing costs
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| Posted 3/20/06 5:57 AM |
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schnapy
LIF Adolescent
Member since 9/05 766 total posts
Name:
Diana
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Re: Question
Why would you want to take 30yrts to pay off your closing costs.. Try to pay them up front
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| Posted 3/20/06 8:39 AM |
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HarleyGirlFLA
Come on in
Member since 5/05 9674 total posts
Name:
Mel
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Re: Question
Posted by Diana1215
It really depends. If the house will appraise for the higher amount without any problems then it shouldn't be an issue. If the house doesn't appraise for that amount you will have to come up with the additional $$.
We did this and it worked out great. We were building a house and knew the the house was going to appraise higher then when we first signed the construction papers.
We were told by our mortgage people that if you want the closing costs to be in the mortgage the house will have to appraise higher. We knew ours would so it wasnt going to be an issue.
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| Posted 3/20/06 8:47 AM |
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jaysee00
LIF Adult
Member since 3/06 1647 total posts
Name:
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Re: Question
Thank you for all of the responses. We were planning on paying them upfront. I guess it's just hard to see all of that money go. Like someone else mentioned, why would we want to have to pay it over 30 years? I'm sure we'll end up just paying it then.
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| Posted 3/20/06 5:43 PM |
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Re: Question
Posted by jaysee00
Thank you for all of the responses. We were planning on paying them upfront. I guess it's just hard to see all of that money go. Like someone else mentioned, why would we want to have to pay it over 30 years? I'm sure we'll end up just paying it then.
We had very briefly thought about it too, but for us it didn't make sense.
I do think closing costs are tax-deductible, if they are at least it's something! I have to check before I see the accountant!
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| Posted 3/20/06 6:50 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Question
Posted by jaysee00
Thank you for all of the responses. We were planning on paying them upfront. I guess it's just hard to see all of that money go. Like someone else mentioned, why would we want to have to pay it over 30 years? I'm sure we'll end up just paying it then.
If you don't pay them up front... you will be paying interest on the closing costs for the life of the loan. Most likely... you will end up paying double in closing costs over the life of the loan.
Pay them up front if you can.
The only closing cost items that are tax deductable is the mortgage interest and any points you may have paid on the loan. Title work and mortgage tax stamps are not tax deductable... and those two items usually make up most of the closing cost figure.
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| Posted 3/20/06 9:53 PM |
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dengal
Dad of Twins
Member since 5/05 1385 total posts
Name:
The 80's Man
Let's Go Mets!
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Re: Question
I would pay it all up front.
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| Posted 3/21/06 8:30 AM |
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