Closing Costs: A Fee Extravaganza!

You found it. The perfect car. You’ve saved for years, done your research, and braved the shudder-inducing viper pit of salespeople. You’re sitting down about to sign the papers when you see that the price you had agreed on is in fact several hundreds or thousands dollars more. With suppressed glee, the salesman asks, “Ah yes, hadn’t you factored in taxes? And vehicle registration? And the doc fee? And the ‘absolutely necessary’ etching fee that simply adds the VIN elsewhere on your car??” (PS-Don’t ever pay the etching fee.)

It can be unpleasant, to say the least, to come to the end of an expensive transaction only to find out that you were unaware of all the costs. And it doesn’t just happen when you’re buying a car. Even more jam-packed with fun little fees are closing costs on a home!

It’s better to be prepared, so here are some basics:

• Closing costs include all of the fees that are related to receiving a loan.


• The law requires lenders to send you a Good Faith Estimate which states the estimated costs of closing the loan.


• The fees that are charged will vary depending on the lender you are using. This is one reason why it is important to shop around for the best lender.


• It is important that you study these fees and make sure that you know what each one is before you get to the time of closing. Make sure that the final fees are similar to the figures given at the time of application on the Good Faith Estimate. Some are allowed to fluctuate, others are not.


• There are three different types of fees at closing: costs of getting a loan, charges for establishing and transferring ownership, and government costs.

You’d hate to have your down payment all saved up and your purchase price all negotiated only find out that you owe thousands of dollars more than you expected. In general, closing costs range from about 2-4% of your loan amount. It can often be negotiated that the seller of your new home covers them, but keep in mind that he’s probably not Mother Teresa and may expect a higher selling price in return; so ultimately, you’re still paying for them. Closing costs can also be added to your loan amount, but like any loan, that extra interest you’d be paying adds up in the long term. In achieving your dream of homeownership, it’s best to plan on these costs from the beginning, and pay as much cash as possible. This will also reduce the likelihood of you slapping your closing agent like you did that car salesman.

Tune in for the Family Life Center’s next newsletter which will excitingly detail specific closing costs to expect!

More Exciting Than a New Transmission...

Do you get a rush of adrenaline when you purchase gasoline? Can you barely suppress giggles of joy when your mechanic hands you the bill for a new transmission? Do you think an oil change is more exciting than puppies, fireworks, and Christmas combined? If you answered no to any of these questions, applaud yourself for sanity, and sit tight—there are some simple ways you can make car ownership a far more enjoyable experience.

The first way is easy—walk whenever possible; or run, if you’re late. You’ll feel better about that doughnut you had for lunch, help the environment, and avoid mileage on your car all in one go! Another option is public transit. Cache Valley has an award-winning bus system that is free of charge. Anyone near USU’s campus also has access to the Aggie Shuttle. Let’s face it, parking is a nightmare and booters are lurking around every dark corner. Why not avoid the hassle?

Next up, make sure your tires are inflated properly. Many gas stations offer free air, and a tire inflated to the right PSI actually gets better gas mileage. Better mileage means less money at the pump.

Although it feels good to pass that truck, excessive acceleration guzzles your gas faster. If you’re fancy enough to have a car with cruise control, flip that puppy on and be content not to "win" the race to your destination. Each car has a different optimal speed, but generally, anything over 60 mph starts reducing your miles per gallon.

Speaking of miles per gallon, another way to get more of them is to remove excess weight from your car. Kicking your passenger to the curb might be a bit harsh, but you may be lugging around all sorts of things you don’t need. Take out the fishing gear, the golf clubs, and the rock salt, and you’ll see your miles per gallon hike upward.

Have a car loan? Getting a tax return soon? By paying off your car loan early, you can save on the interest you would have paid to the bank. They’ll be just fine without your money. Just make sure there’s no prepayment penalty for early payments.

Lastly, just like you need regular doctor check-ups, so does your car. The poor thing spends every night out in the cold, takes you to work every day, and waits patiently while you grocery shop—the least you can do is give it some lovin’. Getting the oil changed regularly along with full-vehicle check-ups can catch problems before they explode in your face and save you money down the road.

So, as exhilarating as it may be to spend your bonus on a carbure-tor, there are plenty of ways to save on car expenses. Take a couple of these ideas and put that saved money toward something really exciting—like puppies, fireworks, and Christmas!