When you are in a situation where you have to pay closing costs. Do you prefer to
A. prefer to pay them
B. roll them into loan (if that is available commercial loan example)
Wouldn't you roll? Doesn't add much to the payment and saves cash for renovations, next property, etc.
closing costs is a super general term that could involve all sorts of line items, so you really need to break down what fees and expenses you want to / your lender will allow to be financed, and what you have to pay in cash up front.
I prefer to pay as much as possible up front, and usually I pay 100% of any Loan fees and closing costs at the time of a purchase or a refi. Sometimes the lender will require fees to be paid up front, sometimes they will add them to the loan. On a commercial loan you will likely not be able to roll origination and points into the loan. On an in-house loan you will likely have to pay them up front. So this really depends on what the lender will allow.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you