Negotiating Mortgage Closing Costs

"It's important to remember that closing costs and fees are going to be required to be paid by you at the time of closing, in addition to any down payment. These closing costs are going to be put on a form called a "HUD Statement", or a "Settlement Statement". The Settlement Statement can be broken down into five categories: settlement charges, prepaids, reserves, any title charges, and recording charges. Your settlement charges are going to be like your origination fee, discount points, appraisal fee, underwriting fees, any credit report fees, and then fees for document preparation. Your prepaids are going to be your prepaid interest, which is just interest that accrues on the loan from the time of closing until the end of the month, also private mortgage insurance, and hazard insurance. Your reserves are usually about two months that are kept in reserve with the lender, and those are for your homeowners insurance, PMI, and taxes. Your title charges are for attorney, courier fees, and any title search or title insurance. Recording charges are typically your county recording fees to record the deed, any state stamps, or city and county tax stamps."