How
Much is All This Going To Cost
The
actual money spent for closing consists of 2 parts. You have the expenses
you will incur just to take over ownership and you will begin to pay your
ongoing expenses.
Some
of your expenses are the same for any house your purchase, however many of
the expenses are dependent on the size of the mortgage you will be taking.
We
will use the example of a $112,000 purchase with a mortgage of $100,000.
The estimated property tax is $1,200.00 per year.
In the event the borrower(s) elect to pay points on the mortgage in return for a lower interest rate then the cost for those points will need to be added into the expenses shown. Each point is 1.0% of the mortgage amount. In this example, each point will add $1,000 to the closing cost.
Expenses
to take over ownership:
| Attorney Fee
(can range from $500 to $1,500) |
$1,000.00 |
| Engineer (can
range from $300 to $600) |
450.00 |
| Appraisal (1
family home) |
350.00 |
| Application Fee |
175.00 |
| Credit Reports |
50.00 |
| Bank Attorney |
700.00 |
| Title Searches |
300.00 |
| Title Insurance (covering both the purchaser and the lender) |
800.00 |
| NY
State Mortgage Recording Tax (See Note 1) |
770.00 |
| NY City Mortgage
Recording Tax (See Note 2) |
1,000.00 |
| Filing Fees |
200.00 |
| Flood
Certification |
25.00 |
| Tax Service Fee |
80.00 |
| Misc.
Bank Fees |
700.00 |
| Total
cost to take title |
$6,600.00 |
Prepaid
Items:
| 6 months
property tax |
600.00 |
| 1 year
homeowner’s insurance* |
700.00 |
| Mortgage
Insurance** |
350.00 |
| Interim
Interest*** |
325.00 |
| Total Prepaid
Items |
$1,975.00 |
Summary:
| Down Payment |
$11,200.00 |
| Closing
Costs |
8,575.00 |
| Total Cash
Needed to Close on this Purchase |
$19,775.00 |
*Estimate
will vary based on the size of the mortgage and\or replacement cost of the structure itself.
**Estimate will vary based on the coverage required by the lender and the credit grade of the borrower(s).
***This represents the interest for on the mortgage from the closing date to the end of the month, therefore the cost is dependant on the actual closing date.
Note 1:
The mortgage recording tax only applies on properties located in New York
State. Note 2: Various counties in New York State impose their own mortgage recording tax. NY City is the highest at 1.0% of the mortgage amount. |