How to Use Your Cash Back Rebate to Cover Closing Costs

Closing costs in California can run $15,000–$40,000+. Your 1% rebate can offset a significant portion — or cover them entirely on mid-range purchases.

What are closing costs in California?

Closing costs are fees paid at close of escrow, above and beyond your down payment. In California, buyers typically pay 1.5–2.5% of the loan amount. On an $800,000 loan, that's $12,000–$20,000.

Common items: loan origination (0.5–1%), escrow fees ($2,000–$4,000), title insurance ($1,500–$3,500), prepaid insurance, property tax prepayment, inspection ($400–$800), and appraisal ($600–$1,000).

How to apply the rebate toward closing costs

If your lender allows it, your 1% rebate can be structured as a credit toward closing costs at escrow. Example on a $900,000 Torrance purchase:

• Your rebate: $9,000
• Estimated closing costs: $13,500–$22,500
• Your rebate covers: 40–65% of closing costs

First-time buyers: this is particularly powerful

If you have a 3–5% down payment loan, closing costs are one of the biggest cash obstacles. A $10,000–$15,000 rebate from Portfolio Home Realty can be the difference between being able to close or not.