Closing Costs: How to Understand the Fees on Your New Mortgage

Several months ago I debuted my #ClosingCostChallenge. If you bring me a Loan Estimate from any of my competitors that advertise on the radio, I will compare apples to apples with what Perl Mortgage can offer and if we can’t beat the other lender’s costs, I’ll donate to the charity of your choice whatever the difference is. That all started because someone brought me a loan estimate from one of my competitors, and our costs were $1,100 lower!

How can we do this? Why do some people charge so much, and what are “no-closing cost” mortgages?

The mortgage industry is over-regulated to the point where any reputable lender should offer you the same interest rate within an eighth of point on the same product. The wild west days are over where anyone with a pulse could get a mortgage, and a lender did whatever they wanted to make the most money for themselves. So one of the few ways we can separate ourselves from our competitors is with closing costs.

In most cases we can set up a loan one of two ways, where we roll closing costs into your loan with a slightly higher interest rate, or where you bring funds to the closing to secure the new mortgage. A pretty good list of the different kind of fees on your mortgage can be found here. These costs are determined by the company and their priorities, which is why I can so confidently stand by what Perl Mortgage offers.

We’re here looking out for your best interest, not our own. Give me a call and let me prove it to you.

David Hochberg


NMLS #136675