What to do with 3.5% closing costs offered on Fredie Mae houses ?

What to do with 3.5% closing costs offered on Fredie Mae houses ?

I think normal closing costs are around 3%, so what to do with remaining .5% ?

Update:

Sorry, Let me explain agaign, Fredie Mae is offering to pay upto 3.5% in closing costs, Typically closing costs are 3% , so can i use the remaining .5% to buy some points ?

3 Answers

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  • 9 years ago
    Favorite Answer

    I don't understand the question. Closing costs are fees that are charged by the lender in order to fulfill the mortgage. 3.5% is the amount of down payment that the Freddie Mac program requires for the LTV (loan to value) of the house for its own risk mitigation (in the event the owner defaults).

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  • Anonymous
    9 years ago

    they pay UP TO 3.5% - if closing costs are less than that - YOU don't get any money from it

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  • 9 years ago

    what to do? Pay it if you want to buy.

    FHA closing is 3.5%. "Normal" are much higher.

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