The Truth About Closing Costs for eMortgages

When it comes to buying a home or refinancing, closing costs can feel like an unpleasant surprise. And with the rise of eMortgages—the fully digital mortgage experience—many buyers are left wondering: Does going digital actually save me money on closing costs?

Let’s break down the truth behind closing costs in the eMortgage era and what you need to know before signing on the (digital) dotted line.

What Are Closing Costs?

Closing costs are the fees and expenses you pay when finalizing a home loan. They typically range from 2% to 5% of the home’s purchase price and cover things like:

• Loan origination fees

• Appraisal and inspection fees

• Title insurance

• Escrow fees

• Taxes and recording fees

• Prepaid interest and homeowners insurance

These costs are required whether you use a traditional or digital mortgage platform.

Are eMortgage Closing Costs Cheaper?

Not always—but they can be. Here’s how:

✅ Lower Operational Costs

Digital lenders often save money on overhead by automating the loan process. Some of those savings may be passed along to borrowers in the form of lower origination fees or reduced lender fees.

✅ Faster Closings

eMortgages streamline the process with digital documents, eSignatures, and remote online notarization (RON), which can reduce labor costs and administrative delays. Faster closings mean fewer holding costs, which can sometimes lead to lower third-party fees.

❌ Third-Party Fees Still Apply

Many closing costs are paid to third parties (like title companies and appraisers), so even with an eMortgage, those fees don’t magically disappear. But some tech-savvy lenders partner with digital title and escrow companies to reduce or bundle these services.

✅ More Transparency

With eMortgages, you’re often provided a clear, itemized breakdown of your costs through your online portal. This can help you spot errors or shop around for services like title insurance and inspections, which could save you money.

How to Save on Closing Costs with an eMortgage

Here are a few tips:

1. Ask for a Loan Estimate Early
   This document outlines your expected closing costs. Review it carefully and don’t hesitate to ask questions.

2. Shop Around for Third-Party Services
   You have the right to choose your own title company, inspector, and insurance provider. Don’t feel locked in to your lender’s preferred options.

3. Negotiate with the Lender
   Some fees are negotiable—especially in a competitive market. Ask about discounts or promotions for digital closings.

4. Consider a No-Closing-Cost Loan (with Caution)
   Some lenders offer no-closing-cost loans by rolling fees into your loan balance or increasing the interest rate. This might be a good option short-term, but could cost more over time.

Final Thoughts

eMortgages are revolutionizing the home financing experience—making it faster, more efficient, and in many cases, more affordable. While they don’t eliminate closing costs entirely, they can offer greater transparency, convenience, and potential savings when compared to traditional mortgages.

The key is being an informed borrower. Understand where your money is going, ask the right questions, and take advantage of the digital tools available to you.

Ready to explore your eMortgage options? [Contact us today] to learn more or get pre-approved in minutes.