Anytime you apply for a mortgage loan you will have closing costs associated with the loan.  There are a few factors that come into play in figuring out your total closing costs.

Here are the list of factors that will determine the closing costs on your mortgage loan:

• Loan Amount -The size of your loan can determine the amount of some of the costs.  Typically, a broker will charge an origination fee and if this fee is 1% of your loan amount, the difference in the loan amount will affect your total closing costs.
• Interest Rate - You have the option of paying extra closing costs to reduce your mortgage rate.  Depending on how low you want buy down your rate, will determine how much more your closing costs will be.
• Title Company -Generally, your title company fees will be determined by the area in which you are buying.  (or where the property is located if you are doing a refinance)  Some states will base their title insurance on the loan amount, where other states may have a flat charge, regardless of your loan amount.  Some states also have state stamps and various recording fees when recording your mortgage.

Recently, I posted about closing cost credits and how to get the seller to pay for these.

I’m licensed to do mortgage loans in Wisconsin and I’ve taken the time to draft up a Good Faith Estimate and Truth and Lending document for you to compare with any mortgage quote you get in the future.  Keep in mind this is for a specific type of borrower and a specific loan scenario.  Estimates can vary.

Good Faith Estimate Example

Truth and Lending Example

I understand every state will have different closings costs, but hopefully this give you a blanket idea of where all costs come from.

Also, if you are in the process of looking for a home loan in Wisconsin, feel free to contact me for another mortgage opinion.

I came across an article about what your home value will be in 2012.

It’s some interesting reading and brings positive news to many areas across the nation.  It doesn’t cover all cities across the nation, but most of the major cities.

Business Week:  What Your Home Will Be Worth in 2012

I have built a new page tab called “Mortgage News” at the top of this blog.  I will continue to post mortgage news that’s important and entertaining for those who like to read about these things.  Click here to go directly to the Mortgage News page.

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Builder confidence in the market for newly built, single-family homes rose one point in August to its highest level in more than a year, according to the latest reading of the National Association of Home Builders Housing Market Index (HMI), released today.

continue reading…

A financial adviser has been indicted on federal fraud charges that claim he operated a pyramid scheme that duped investors out of more than $2.5 million since 2006.

Click here to continue reading…

There are lots of credit cards available today.  Good credit, bad credit, balance transfers, low interest, rewards, cash back, etc.  I can understand why anyone would get confused when it’s time to open a new account.  There are a few important factors to keep in mind when choosing the right credit card.  Here they are:

How to choose the right credit card:

Making a decision in the best credit card for you depends entirely on how you use your credit. Here are some questions you could ask yourself:

• Do I typically carry a balance or do I pay my bills in full each month?
• Am I looking for rewards for using my credit card?
• Do I only need to transfer a balance to a lower interest credit card?
• Is there a charity or institution I would like to support through my choice of credit cards?

Be honest with yourself when making this decision.  If you are planning on using the card a lot and keeping a balance once in awhile, then focus on a card that has a lower interest rate.  The lower the rate, the less interest you will have to pay on that balance you keep.  Just like any loan, if you plan on keeping a running balance, the lower interest you pay, the more money you will save.

What to watch out for when choosing a credit card:

Fees.  Many credit cards have annual fees just for keeping the account open.  So, if you are planning on using the card sparingly, it would be best to focus on getting a card that has no annual fee.  Even if the interest rate is higher, that’s ok, because you don’t plan on having a balance.  If you do plan on having a balance, it will probably save you more money on a lower interest rate card that does have an annual fee.

Also, make sure you are aware of all the terms of your card.  Most cards state they can increase your rate at anytime, so watch out for surprise interest rate hikes.  If this happens, don’t be afraid to call them to negotiate this down, especially if you have paid your account on time, every time.

Where to find the best place to compare credit cards:

By far, one of the best sites to compare all kinds of credit cards and find the right one for your situation is at CreditCards.com Apply for a credit card today