Understanding SECU Mortgage Closing Costs
Many homebuyers budget for the down payment but forget about "Closing Costs"—the fees required to finalize your mortgage transaction. In North Carolina, these costs typically range from 2% to 5% of the final loan amount. Our calculator helps you itemize these expenses so you know exactly how much cash you need to bring to the closing table.
Breakdown of Common Fees
- Origination Fee: A fee charged by the lender (often 1% of the loan) for processing your application.
- Appraisal: A professional valuation to ensure the home is worth the purchase price (approx. $400-$600).
- Title Search & Insurance: Ensures no one else has a legal claim to the property.
- Prepaid Items: Lenders often require you to pay the first year of homeowners insurance and several months of property taxes upfront.
Frequently Asked Questions
Can I finance these costs?
Sometimes. You may be able to roll these costs into your loan
amount or accept a slightly higher interest rate in exchange for "lender credits" to
cover them.
Who pays these fees?
Most are paid by the buyer, but real estate agent commissions
are usually paid by the seller. You can also negotiate for the seller to pay some of
your closing costs.