Do brokers charge the buyer for the loan part of closing costs, or will the bank pay that? One broker said the bank will pay - another broker told us it would be about $1000
IrishBride-05
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Re: closing cost
I was quoted approx. 4% of the amount we're borrowing.
I don't really understand the rest of the question, but there is such a thing as a no closing cost mortgage, but I believe you still have to pay attorney fees and taxes upfront.
casey31
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Ours came out to 4%.
nov2004bride
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Re: closing cost
Ours are estimated at $13,000.
skew
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our closing costs are less than 2% of our loan amount (>500k). we opted to pay the property taxes and insurance on our own therefore we do not have these additional costs at closing.
KimberlyBride
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Ours were a little over 3% of house price.
Charly
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Ours was about $12k - about 3%. We rolled it into our mortgage
LisaT
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Posted by skew
our closing costs are less than 2% of our loan amount (>500k). we opted to pay the property taxes and insurance on our own therefore we do not have these additional costs at closing.
don't you still need to reimburse the seller for property taxes already paid, at closing? That was a bit of $$ at our closing - property taxes had already been paid for the year and we had to reimburse the seller for the rest of the year...
I guess depending on what time of year you buy, that could be more or less $$
I understand that you're not paying into escrow for taxes/insurance.
skew
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Re: closing cost
Posted by LisaT
Posted by skew
our closing costs are less than 2% of our loan amount (>500k). we opted to pay the property taxes and insurance on our own therefore we do not have these additional costs at closing.
don't you still need to reimburse the seller for property taxes already paid, at closing? That was a bit of $$ at our closing - property taxes had already been paid for the year and we had to reimburse the seller for the rest of the year...
I guess depending on what time of year you buy, that could be more or less $$
I understand that you're not paying into escrow for taxes/insurance.
we are closing 5/16 and the owner is moving 5/21. the per diem amount total that she is paying us WELL exceeds the property tax amount that we would owe her. so no, we don't have to reimburse her.
we WILL have to pay taxes at the end of may on our own. i am not factoring that into the closing costs though.
nov2004bride
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Posted by Oct04Bride
Ours was about $12k - about 3%. We rolled it into our mortgage
How did you roll it into the mortgage?
LisaT
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Posted by skew
we are closing 5/16 and the owner is moving 5/21. the per diem amount total that she is paying us WELL exceeds the property tax amount that we would owe her. so no, we don't have to reimburse her.
we WILL have to pay taxes at the end of may on our own. i am not factoring that into the closing costs though.
ah, I see.
We closed 9/21, so we owed the seller for Oct, Nov & Dec.
LisaT
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Re: closing cost
Posted by nov2004bride
Posted by Oct04Bride
Ours was about $12k - about 3%. We rolled it into our mortgage
How did you roll it into the mortgage?
by doing a seller's concession. In effect artificially increasing the selling price of the house by the amount of the closing costs. The seller has to agree to it, and the house has to appraise for the higher value. (so if you buying for $300K and the closing costs are $10K, you now are asking the bank to cover a mortgage on a $310K sale)
There are pros and cons to going this route. The plus side is that you're not shelling out the $$. The con is you're now paying interest on those closing costs...
nov2004bride
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Re: closing cost
Posted by LisaT
Posted by nov2004bride
Posted by Oct04Bride
Ours was about $12k - about 3%. We rolled it into our mortgage
How did you roll it into the mortgage?
by doing a seller's concession. In effect artificially increasing the selling price of the house by the amount of the closing costs. The seller has to agree to it, and the house has to appraise for the higher value. (so if you buying for $300K and the closing costs are $10K, you now are asking the bank to cover a mortgage on a $310K sale)
There are pros and cons to going this route. The plus side is that you're not shelling out the $$. The con is you're now paying interest on those closing costs...
Thank you so much!!! You always explain things so nicely
Charly
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Re: closing cost
Posted by LisaT
Posted by nov2004bride
Posted by Oct04Bride
Ours was about $12k - about 3%. We rolled it into our mortgage
How did you roll it into the mortgage?
by doing a seller's concession. In effect artificially increasing the selling price of the house by the amount of the closing costs. The seller has to agree to it, and the house has to appraise for the higher value. (so if you buying for $300K and the closing costs are $10K, you now are asking the bank to cover a mortgage on a $310K sale)
There are pros and cons to going this route. The plus side is that you're not shelling out the $$. The con is you're now paying interest on those closing costs...
Thanks Lisa! Well said!!
In my case...if you think about it - the interest on $12k over 30 years...not so much of a con. It's better than laying out $12k cash that we didn't have. We aren't planning on staying here more than 5 years and the house already appraised for more than the house + closing costs. So for me, it worked out!!!
LisaT
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Re: closing cost
Posted by nov2004bride
Thank you so much!!! You always explain things so nicely
aw, thanks (and you're welcome )
I learned a lot going through the home buying process and getting into the RE appraisal business, so I'm happy to help if I can.
FireIslandLove
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Re: closing cost
I have a question now. You said the seller has to approve you rolling the closing costs into the house - is this common or can a buyer roll the closing costs into the cost of the house most of the time? TIA!
LisaT
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Re: closing cost
Posted by FireIslandLove
I have a question now. You said the seller has to approve you rolling the closing costs into the house - is this common or can a buyer roll the closing costs into the cost of the house most of the time? TIA!
I'd say its pretty common to roll the costs in (it seems to happen often in the appraisals we do for purchases).
Depends on the bank/mortgage company and how they want to handle it. The seller doesn't really have any reason to object. It may cost them more in taxes (since they'd be taxed on a higher amount) but its nominal.
FireIslandLove
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Re: closing cost
Thank you, good to know!
Preshy7
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Re: closing cost
we paid some interest forward and taxes back - and we closed on a very good day- march 31- at the end of the month -so for a our closing costs were only 6k (1.5% of house)
SeptemberBride03
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Re: closing cost
Posted by LisaT
Posted by nov2004bride
Posted by Oct04Bride
Ours was about $12k - about 3%. We rolled it into our mortgage
How did you roll it into the mortgage?
by doing a seller's concession. In effect artificially increasing the selling price of the house by the amount of the closing costs. The seller has to agree to it, and the house has to appraise for the higher value. (so if you buying for $300K and the closing costs are $10K, you now are asking the bank to cover a mortgage on a $310K sale)
There are pros and cons to going this route. The plus side is that you're not shelling out the $$. The con is you're now paying interest on those closing costs...
