How to lower mortgage closing costs

Closing costs include lender fees and third-party services. You may be able to reduce them by accepting lender credits (often in exchange for a higher rate), shopping for services you’re allowed to choose (e.g. title), and comparing quotes from multiple lenders.

Lender credits lower your out-of-pocket closing costs but may come with a higher interest rate, so you pay more over time. Whether that tradeoff is worth it depends on how long you plan to keep the loan.

Getting quotes from several lenders shows you the range of closing costs and credits available. One lender might charge less in fees or offer more credits than another for a similar rate.

Use a comparison tool to enter each quote’s closing costs, lender credits, rate, and APR. That way you can see how different combinations of rate and fees affect your cash to close and long-term cost.