| PRO-formance Realty Concepts 3233 W. Peoria Ave. Ste. 218 Phoenix, Arizona 85029 |
| Cynthia DaSilva |
| (602) 881-1791 Fax: (602) 938-8668 |
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Negotiating Closing Costs
In addition to the sales price, buyers and sellers frequently include closing costs in their
negotiations. This can be for both major and minor fees. For example, if a buyer is particularly
nervous about the condition of the plumbing, the seller may agree to pay for the house
inspection. Likewise, a buyer may want to save on up-front expenditures, and so agree to pay
the seller's full asking price in return for the seller paying all the allowable closing costs. There's
no right or wrong way to negotiate closing costs; just be sure all the terms are written down on
the purchase agreement.
At the closing, certain costs are often prorated (or distributed) between buyer and seller. The
most common prorations are for property taxes. This is because property taxes are typically
paid at the end of the year for which they were assessed.
Thus, if a house is sold in June, the sellers will have lived in the house for half the year, but the
bill for the taxes won't come due until the following year! To make this situation more equitable,
the taxes are prorated. In this example, the sellers will credit the buyers for half the taxes at
closing.
Understanding Different Types of Loans
Today's home buyer has more financing options than have ever been available before. From
traditional mortgages to adjustable-rate and hybrid loans, there are financing packages
designed to meet the needs of virtually anyone.
While the different choices may seem overwhelming at first, the overall goal is really quite
simple: you want to find a loan that fits both your current financial situation and your future
plans. Though this article discusses some of the more common loan types, you should spend
time talking with different lenders before deciding on the right loan for your situation.
General categories of loans
Most loans fall into three major categories: fixed-rate, adjustable-rate, and hybrid loans that
combine features of both.
• Fixed-rate mortgages
As the name implies, a fixed-rate mortgage carries the same interest rate for the life of the loan.
Traditionally, fixed-rate mortgages have been the most popular choice among homeowners,
because the fixed monthly payment is easy to plan and budget for, and can help protect against
inflation. Fixed-rate mortgages are most common in 30-year and 15-year terms, but recently
more lenders have begun offering 20-year and 40-year loans.
In addition to the sales price, buyers and sellers frequently include closing costs in their
negotiations. This can be for both major and minor fees. For example, if a buyer is particularly
nervous about the condition of the plumbing, the seller may agree to pay for the house
inspection. Likewise, a buyer may want to save on up-front expenditures, and so agree to pay
the seller's full asking price in return for the seller paying all the allowable closing costs. There's
no right or wrong way to negotiate closing costs; just be sure all the terms are written down on
the purchase agreement.
At the closing, certain costs are often prorated (or distributed) between buyer and seller. The
most common prorations are for property taxes. This is because property taxes are typically
paid at the end of the year for which they were assessed.
Thus, if a house is sold in June, the sellers will have lived in the house for half the year, but the
bill for the taxes won't come due until the following year! To make this situation more equitable,
the taxes are prorated. In this example, the sellers will credit the buyers for half the taxes at
closing.
Understanding Different Types of Loans
Today's home buyer has more financing options than have ever been available before. From
traditional mortgages to adjustable-rate and hybrid loans, there are financing packages
designed to meet the needs of virtually anyone.
While the different choices may seem overwhelming at first, the overall goal is really quite
simple: you want to find a loan that fits both your current financial situation and your future
plans. Though this article discusses some of the more common loan types, you should spend
time talking with different lenders before deciding on the right loan for your situation.
General categories of loans
Most loans fall into three major categories: fixed-rate, adjustable-rate, and hybrid loans that
combine features of both.
• Fixed-rate mortgages
As the name implies, a fixed-rate mortgage carries the same interest rate for the life of the loan.
Traditionally, fixed-rate mortgages have been the most popular choice among homeowners,
because the fixed monthly payment is easy to plan and budget for, and can help protect against
inflation. Fixed-rate mortgages are most common in 30-year and 15-year terms, but recently
more lenders have begun offering 20-year and 40-year loans.
Cynthia DaSilva
602-881-1791
REALTOR®
602-881-1791
REALTOR®