Closing Costs vs Down Payment Explained

What are closing costs? What are down payments? What is the difference between closing costs and down payments? This video has the explanation you need.

Knowing the difference between these terms will save you—the agent—time and mental energy when closing escrow.

In this video, Robert Rico defines the difference between closing costs and down payments so you understand how they function in the transaction.

Closing costs are the fees associated with the loan type. This includes prepaid taxes, prepaid insurance, escrow fees, title fees, origination fees, and lender points.

The buyer needs to finance the money for these associated fees.

Down payments are a percentage of the home loan that the buyer pays to the seller. The percentage changes depending on the loan type.

The conventional loan has a 20% down payment while an FHA loan has 3.5% and a VA loan has 0% down payments.

#ClosingCost #DownPayment #Homebuyer

[aravindmuthaiah]

I like it when you say "you with me". Reminds my college professor. Great video, thanks

[shacoraparamole]

Thank you ! My Lender couldn't even explain this to me. You did in less than 2 minutes.

[oscaroscar]

You explain things so easy! Great videos!! Keep them coming!

[lisacoons]

Thank you so much for these videos! Keep them coming please.

[Davion_savant]

Hello can down payment and closing cost assistance be utilized at the same time ?

[patchareels]

Love your VDO always get to the point and clear explanation.

[mars]

This is very informaive thank you. I understand that a down payment is considered a payment paid towards the house. However, are closing costs considered as such also?

[AugustRae]

This was a quick explanation. Thank you.

[gocpng]

You're Smart, Inflections On Point.

[chief]

I’ll be closing in a few weeks using VA loan. I’ll will have 3-4% for paying origination fees plus lender points to lower interest.
Now I’m looking for information regarding whether a down payment (let’s say 10%) would be best, or waiting until after closing and paying that same 10% toward principle only.
What would be some differences between the 2 options. I realize down payment would make payments smaller, but not by much. I also don’t plan to own the home longer than 3 to 5 years if that would influence anything.
Any advice?

[moefraz]

If I have a car loan should I pay it off before getting a mortgage

[steveornelas]

Thank Great info just what I was looking for. 👍

[anupdhakal]

God, can u slow down the speed 😅😅 its good stuff but i cant get it all at the same time 😂😂 thanks a bunch for the video

[mankitchengrill]

Please help I'm buying a house for $120, 000 the owner is coming in with 5000 closing Galindo told me my down payment would be $6, 500 need at closing or is she talked about in total with his 5000