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When you purchase a home you are going to have to pay closing costs. These are fees for things like mortgage origination and transfer taxes. And they can be quite expensive. In fact, you can expect to pay around 2% to 5% of the value of the home in closing costs, so that’s thousands — or even tens of thousands — of dollars.

Closing costs can be paid at the time when you complete the purchase of your property and ownership is transferred. But it can sometimes be difficult to come up with all that money at the same time as you must make a down payment. You have another option, though. You may be able to roll closing costs into your mortgage, which means you will borrow to pay them and then pay the borrowed funds off over time along with your home loan.

While this may seem like an easy solution to the problem of having to pay out tons of money to close on a home, there are pros and cons of this approach and you need to consider both to decide if this is right for you.