Real estate agents and lenders typically suggest loan processing providers and insurance agents they are familiar with, but borrowers do not have to follow their recommendations and can shop around, Ms. Cornelissen said.
Steve Gottheim, general counsel for the American Land Title Association, which represents the title insurance industry, said insurance costs have fallen about 8 percent nationally over the past two decades. The majority of title insurance costs would be covered for searching county deed files, he said.
The consumer bureau’s post also said higher credit reporting fees, for which mortgage lenders have recently reported significant fee increases, “warrant further review.” Home buyers have no control over these fees that credit reporting agencies charge lenders.
Here you will find some questions and answers about the costs of taking out a loan:
What is the best way to reduce the cost of buying a home?
The most effective thing homebuyers can do is to get mortgage offers from multiple lenders, said Ms. Thompson of the consumer agency. “Most people don’t do that,” she said. However, research shows that doing so can give them lower interest rates and save them up to several thousand dollars over the life of their loan.
How can I determine if it’s worth paying for discount points?
Calculate the “break even” point for your loan. At $300,000 Fixed-rate mortgage 6.5 percent over 30 years, your monthly payment for principal and interest would be about $1,896. If you purchased a discount point for $3,000 and reduced your price to 6.25 percent, you would pay about $1,847 and save $49 per month. If you divide $3,000 by $49, you would need to own the home for about five years before selling or refinancing to recoup the additional fee. (Financial sites like Nerdwallet offer calculators.)
Are discount points tax deductible?
According to TurboTax, costs for discount points are generally deductible. However, you must itemize deductions on your return and not take the standard deduction.
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2024-03-15 13:00:15
www.nytimes.com
