Trying to decide if I should just pay the housing counseling fee out of pocket now, or have it added to my mortgage. Upfront is a hit to my wallet, but rolling it in means more interest over time, right? Which way did you go, and did you regret it?
Honestly, I felt the same pain in my wallet staring at that counseling fee. I ended up just paying it upfront, mostly because the idea of paying interest on it for 30 years made my eye twitch. It stung for a minute, but at least it was done and over with. If it’s a small enough fee and you can swing it, I’d say rip off the band-aid. But hey, if cash is tight, rolling it in isn’t the end of the world either. No shame in that game.
Totally get where you’re coming from. I paid upfront too—felt like one less thing hanging over my head. But honestly, if I’d been tighter on cash, I wouldn’t have blinked at rolling it in. Just double-checked the numbers first to see what it’d actually cost over time...wasn’t as bad as I thought, but still, interest adds up.
I’ve seen folks go both ways on this, and honestly, I’ve had a few clients who swore by just rolling everything in—counseling, closing costs, you name it. One guy told me he’d rather “owe the bank than owe himself,” which cracked me up at the time. But I get it. Sometimes you just need that breathing room, especially if you’re already stretching for the down payment or moving expenses.
That said, I’m a bit of a worrier when it comes to debt. I remember early in my career, I had a buyer who rolled in every possible fee, thinking it was just a few extra bucks a month. Fast forward a few years, and he was grumbling about how much he’d paid in interest on those little add-ons. It’s sneaky how it adds up—like that gym membership you forget to cancel.
But hey, sometimes cash flow is king. If paying upfront means you’re eating ramen for a month, maybe it’s not worth the stress. I always tell people to run the numbers twice—once for peace of mind, and once for reality check. Sometimes the difference is smaller than you’d think, but sometimes it’s enough to make you pause.
I guess my take is: if you can swing it without sweating every bill for the next few months, paying upfront feels cleaner. But if rolling it in keeps your savings intact for emergencies (or just life), that’s not a bad move either. Just don’t let those “just a little more” fees sneak up on you... they’re like gremlins after midnight.
I hear you on the “owe the bank, not myself” thing—honestly, it’s tempting when you’re staring at all those moving costs and random expenses popping up like whack-a-mole. I did the math on rolling my counseling fee into the loan, and it was like, “Oh cool, just a few bucks more a month.” But then I looked at the total interest over 30 years and suddenly my $200 counseling fee was turning into a $400+ “life lesson.” Not exactly the souvenir I wanted from my first house.
That said, I get why people do it. When I closed, my checking account was looking pretty sad, and I almost caved just to keep a little cushion. If you’re already stretching thin, maybe it’s worth the peace of mind. But if you can pay upfront without resorting to instant noodles for dinner every night, it’s probably cleaner in the long run. Those little fees really do multiply like rabbits if you’re not careful.
