Closing Costs Explained

About Mortgage Closing Costs

Our No Cost Loans are just what they say they are, but you may still need to bring funds to your home closing with American Mortgage Capital. Before your closing, you’ll review your transaction summary with your loan officer, who will let you know how much money you will bring to closing and why. While some items on your transaction summary may have the appearance of mortgage closing costs, they are not.

When you finance your home through a American Mortgage Capital No Cost Loan, the money you bring to closing is NOT for home closing costs.

The expenses you will cover are referred to as pre-paids, which can include:

  • Interest you owe on your loan
  • Escrow deposits
  • 3rd party expenses not related to the mortgage


When you bring money to closing, it comes back to you in two ways:

  • You will not make a payment the month after you close
  • Your current lender will send back ALL the money in your current escrow account


The Escrow Officer must collect for the new escrow account whatever amount should be in that account at this time of year (pro-rated). You will receive a refund from your current lender for any funds they are holding in escrow for you, usually about 21 days after closing. There is also one month of interest collected at closing, but this is accounted for — you won’t make a mortgage payment on the first of the next month.

American Mortgage Capital does have a way for you to bring ZERO cash to closing, typically by simply adding the amount to your total loan balance; however, this is something to discuss with your loan officer, who will show you exactly where the funds are added.

Exactly how much money will I need to give escrow for the loan closing?

The final dollar amount needed from you at closing will come from the Escrow Officer when a HUD-1 estimated closing statement is completed. Up until closing we will have a good estimate, but will not know the exact amount until the paperwork has been funded, recorded and finalized.