Mortgage Secrets Experts Don't Want You To Know

The Hidden Costs of Mortgages

Beyond the interest rate, several hidden costs can catch borrowers off guard. These include closing costs, which typically range from 2% to 5% of the loan amount, and can encompass fees for appraisals, title insurance, and origination. It's essential to review the Loan Estimate provided by your lender to understand these costs upfront. Moreover, private mortgage insurance (PMI) may be required if your down payment is less than 20%, adding to your monthly expenses³.