Massachusetts closing costs are an integral part of the overall mortgage decision. Don’t make the costly mistake that a lot of consumers do by choosing one mortgage over another based solely on the lowest mortgage rate. Hidden closing costs and bloated fees can turn what appears to be a great Massachusetts mortgage rate into a not-so-good deal. You must know what are typical Massachusetts mortgage closing costs when comparing mortgage rates if you want to get the best overall deal.
Closing costs are the fees associated with obtaining mortgage financing. Massachusetts closing costs are initially disclosed on a Good Faith Estimate and must be guaranteed by Massachusetts mortgage companies for a minimum of 10 days to allow consumers to shop for a mortgage.
Closing costs from the Good Faith Estimate flow over to the HUD-1 Settlement Statement which are categorized in six sections:
- Items Payable in Connection with Loan (mortgage lender fees and third-party fees) – Section 800
- Items Required by Lender to Be Paid in Advance (mortgage prepaids) – Section 900
- Reserves Deposited with Lender (lender escrows) – Section 1000
- Title Charges (title search and other title charges) – Section 1100
- Government Recording and Transfer Charges (recording fees for property deeds) – Section 1200
- Additional Settlement Charges – Section 1300