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I am very scared... someone just told me that as a rule of thumb you use 6% of what you are borrowing -
please tell me this is not true...
I was hoping closing costs would be around 8-10,000 -
Is there a way of knowing - before your attorney gives you the figures?
Your lender should give you a good faith estimate on closing costs. They're just estimates, but they should give you an idea of the ballpark cost for your closing.
Mine gave me a general idea of what my closing costs will be before I even completed the application for my mortgage. I don't know where that 6% *rule of thumb* came from, it's new to me. Obviously, if you're paying points on your mortgage it will increase your costs.
BTW, my estimate is roughly 3.5% of my loan.
Are you excited yet? LOL
:)
I just did the math. Ours was 6% of our loan, weird huh? I never heard of that rule though.
That seems high to me. Did you pay points or pay the mortgage broker a fee?? I'm just wondering...
I received the truth-in-lending statement w/ my 'pre'-commitment and the numbers were pretty much right on w/ what my mortgage broker told me.
Your mortgage broker is supposed to give you a good faith estimate, but they can play games with it. A friend got theirs as scribbled, hand-written notes. Ours was a nice print-out with detail.
Some of the things that will vary will be the estimate on taxes (way too much), attorney fees ($700+)and whether or not you need a survey ($450)
The most offensive part is the Mortgage Tax - a tax for the privilage of getting a mortgage - only in NY, ya gotta love it! $1800 estimated in our case. Also, title insurance - almost $2000
Ours was estimated to be about 4.3% and here's an update! I just got off the phone with our lawyer (we close on Friday) and it looks like the actual settlement costs for closing will be about 3.8% Yippee!!!
No points and no mortgage broker fee. Not having the closing papers in front of me, I recall approx costs were around 10K - we borrowed $162,000. Most of the closing costs were taxes.
Who did you get your H.O. insurance from and when did you *have* to get it?
I haven't begun researching yet. My renter's insurance is w/ All State but I think I want to change.
I estimated about $1200 - $1500/ yr. Is that about right?
Like I said we were thinking our closing costs would be around $10,000 anything higher and that would mean we would have to borrow more which will mean higher closing costs - that doesn't make sence.
We are still having second thoughts about this whole thing - everyone keeeps telling us you should love the home - well we don't.
Thanks for the posts!!! I really hope our clos. costs are around the 3/4 percent.
I work for a insurance agency - I sell life insurance - however, we do sell homeowners here - and I was quoted around that -
I know the feeling about not loving the home. We haven't bought one yet but all the ones we saw did nothing for me.
Thanks for the info. on insurance. Closing costs don't go by the amount you borrow. Many of the numbers are fixed.
Here's an idea of what constitutes into closing costs (I may forget something here)
Bank Atty - typically $500 flat rate
Underwriting Fee - about $300
Mortgage Tax (Karen's fave!) - .75% of the selling price
Title - Approx. $1500 - I have a friend who does this and she's doing it at cost for us, although, a huge part of the $1500 are state regul. fees that she can't get around.
Tax Svce. Fee - $75
Recording Fee - $100
6 month's pre-paid real estate taxes - this is where it can really add up. Our taxes are around 6K, so 1/2 is almost 1/3 of our closing costs.
1 yr. prepaid H.O. insurance - Approx. $1200 - $1500.
I think that's it! I did this from memory so I may have forgotten one or two!
Other costs:
Mortgage Application fees - vary! Ours were $179 Application and $250 for *processing* (whatever!)
Appraisal - $300
Engineer w/ termite inspection - ours was $560 but we also tested for Radon which was $135 of that (and not required on LI).
Whew! Thank goodness I'm bored at work!!
:)
Sorry 'bout the grammar in the beginning 'constitutes into closing costs' LMAO!
Anyway, I forgot personal attorney . This is approx. an add'l $750 (++)
OK! I'm done!
:)
Now you have me doubting my memory. Tonight I will pull out the closing statement and report back with the actual breakdown.
And I will include my $60 tip to the Title closer person whoever she was, just for Karen H! ;-)
I've had various policies through an insurance broker in Westbury for years, and find their customer service to be outstanding, so we went with them without even shopping around. It's Friedman & Friedman Agency - 516-683-0500 and Mary Nelson (ext. 202) is who I've been dealing with. You're on target with the price I think, although that's going to vary based on the cost of the house, location, liability, contents, etc. I set it all up with her in advance, and sent the check maybe 3 - 5 weeks before the closing. Good luck!
