Slash Closing Costs With Home Equity Experts' Insight
Slashing your closing costs may seem daunting, but with insights from home equity experts, you can discover practical strategies to save money and browse options that fit your financial goals.
Understanding Closing Costs
When purchasing a home, closing costs are the fees and expenses you pay at the closing of a real estate transaction. These costs typically range from 2% to 5% of the loan amount1. They include various charges such as loan origination fees, appraisal fees, title insurance, and more. Understanding these costs is crucial because they can significantly impact your overall home-buying budget.
How Home Equity Can Help
Home equity refers to the portion of your property that you truly own, calculated as the difference between your home's market value and any outstanding mortgage balance. Leveraging home equity can be a smart way to manage closing costs. By tapping into your home equity through a home equity loan or a home equity line of credit (HELOC), you can access funds at a lower interest rate compared to personal loans or credit cards2.