Closing costs are the portion of your investment in addition to the down payment. Some of these items may include an appraisal, attorney charges, property taxes, and homeowner’s insurance to name a few. You may even hear some of my competitors advertising ZERO closing costs, or that they will pay your closing costs for you. So, they are going to give you thousands of dollars out of the kindness of their heart….right? Sounds too good to be true? Because it is….Disclaimer, they are not reinventing the wheel. It is common practice that higher rates are available in exchange for a lender credit to absorb closing costs. This is one of the reasons I show my clients options when it comes to rates. In some instances it may make sense to take a slightly higher rate in exchange for a credit, or it may make more sense to buy points for a lower rate…it all depends on your particular scenario. That is why you need to make sure you are working with a trusted local mortgage expert.