Cash to close: What is it, how to pay it and how to avoid fraud

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Simply put, cash to close is the amount you’ll need to bring to your closing to complete your real estate purchase. Related: How to prepare for your real estate closing. However, you probably don’t want to bring actual cash, even if your title company is one of the few that accepts it.

If you’re paying off your home loan well in advance, those fees can add up quickly. For example, a 3% prepayment penalty on a $250,000 mortgage would cost you $7,500. In the process of trying to save money by paying off your mortgage early, you could actually lose money if you have to pay a hefty penalty.

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