Did you know that there are advantages to paying closing costs in certain situations?
Paying closing costs
If you plan to stay in your home long-term or keep the same mortgage for at least five years, it may make sense to pay closing costs and benefit from the lower interest rate. Many of the closing costs are fixed amounts. If you have a higher loan balance, your overall finance charge could be lower if you pay the closing costs.
Paying no closing costs
If you do not plan to stay in your home for more than five years or anticipate borrowing in the near future, opting a no closing costs mortgage may be more beneficial. Your interest rate will be a little higher, but you won’t have to worry about recouping your closing costs, which could take several years.