Saving money for down payment and closing cost could be hard for some home buyers. some non profit organizations, employers, local, and state governments offer downpayment and closing cost assistance. The guidelines for each of these programs varies. Our Loan specialist will be happly to explore various programs to see which ones best meet your needs.

Use our calculator to simulate payments, compare terms. If you need more assistance, we are here to help you. Get intouch

Closing costs refer to the various fees and expenses that are incurred by buyers and sellers during the process of transferring ownership of a property. These costs can vary depending on the location of the property, the type of mortgage, and other factors. Some common examples of closing costs include:

1. Loan origination fees: This is a fee charged by the lender to process a mortgage application.
2. Appraisal fees: This is a fee charged by an appraiser to assess the value of the property being sold.
3. Title insurance: This is insurance that protects the buyer and lender from any title disputes or defects in the property's ownership.
4. Property taxes: These are taxes that are due on the property being sold.
5. Attorney fees: This is a fee charged by an attorney who assists with the legal aspects of the transaction.
6. Recording fees: These are fees charged by the government to record the transfer of ownership.

The total closing costs can be significant and can range from 2% to 5% of the purchase price of the property. It's important to budget for these costs in addition to the down payment and other expenses associated with buying or selling a property

Fixed rate mortgages are more popular that adjustable rate mortgages. In some cases adjustable rate mortgage might be a better option. To help you explore the pros and cons of each program, get intouch with our loan advisor.

There are several ways to avoid paying mortgage insurance, which is typically required for borrowers who put down less than 20% on a home purchase. Here are some options:

1. Make a larger down payment: If you can afford it, putting down a larger down payment of 20% or more can help you avoid paying mortgage insurance altogether. This is because the more you put down upfront, the less risky you appear to lenders.

2. Get a piggyback loan: A piggyback loan, also known as an 80-10-10 loan, involves taking out two loans to avoid paying mortgage insurance. You would take out a first mortgage for 80% of the home's value, a second mortgage for 10%, and put down a 10% down payment. This method can save you money in the long run, but it's important to consider the additional interest and fees associated with the second loan.

3. Look into government-backed loans: Some government-backed loans, such as VA loans and USDA loans, do not require mortgage insurance, even with a low down payment.

4. Improve your credit score: A higher credit score can help you secure a loan with a lower interest rate, which can reduce the amount of mortgage insurance you need to pay.

5. Refinance your mortgage: If you've already purchased a home with a mortgage that includes mortgage insurance, you may be able to refinance your loan once you've built up more equity in your home. This could help you qualify for a new loan without mortgage insurance.

It's important to note that each of these options has its own pros and cons, and not all may be feasible for every borrower. It's best to speak with a trusted mortgage professional to determine the best option for your individual circumstances