Alabama Closing Costs Rates

Closing Costs in Alabama

Whether you are a new homebuyer, an experienced one or a refinancing homeowner, closing costs can be a bit confusing. They are basically expenses that come with the mortgage loan processing process. Since mortgage loans are offered by lenders, closing costs are also charged by and paid to lenders. But there are third party fees involved. Lender’s costs include loan origination fees while third party costs are things like appraisal fees, survey fees, title insurance and taxes among others.

On average, closing costs in Alabama amount to an average of 2.5% of the total loan amount. But that varies from one lender to another and from one state to another. Getting the help of a mortgage professional that understands the closing cost associated with a mortgage in Alabama can help you reduce the amount of closing costs you pay and can ultimately get you a better deal.

Also, note that the total amount that you will pay largely depends on where your house is located. For instance, the average closing costs around Shelby County add up to $3,466 for a $200,000 mortgage. The same mortgage amount in Jefferson County may have you paying closing costs of $4,189. The main difference in cost is caused by varying costs of origination points and survey.

For a more detailed breakdown of Alabama closing costs for each county, please contact us and we will be sure to provide you more information. Give us a call, or take 30 seconds and get your FREE, custom rate and closing cost options.