1.
Mortgage loan origination fees:
At $1,600 t0 $2,400 on a $80,000 mortgage loan, this is by far the largest closing fee
(2% - 3% of the mortgage loan). |
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By custom in most states, Loan origination fees are paid
by the Seller and therefore not included in our estimates
of Buyer's closing cost. |
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| 2.
Closing Fees Paid by the Buyer: (Buyer's closing cost) |
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Escrow
fees: $400 to $1,200 to handle purchase related documents and
funds. |
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Homeowners
Insurance: $300 to $1,500 depending on the price of the
property. |
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Title
Insurance: $300 to $1,000 depending on the price of the
property. |
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Property
taxes: For a July close, Buyer must reimburse Seller
for August and September taxes paid by Seller as part of
quarterly taxes due and paid on July first. |
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Legal
fees: about $450 in eastern states, zero in western states
where lawyers are not required. |
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Inspections: $250 to $500 for professional inspection of the property |
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Private
Mortgage Insurance (PMI): About $400 for Buyers with
less than a 20% down payment. |
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Prepaid
loan interest: Buyer must pay interest on the mortgage loan
for days between closing and the due date of the first mortgage
payment. |
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Recording:
about $50 to record the deed and mortgage. |
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Courier
fees: Usually less than $50. |
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Notary:
$20 per signature per buyer to have signature verified by a
notary (usually the Escrow officer, or closing attorney). |
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| Typical
Buyer's closing cost for a $100,000 home (1.5%) |
$1,500 |