Reasonable closing cost

[nin_sis]

I am closing on a house in a couple of weeks…we have the same stats as you. Closing costs are approx. $10-12K. A bulk of it is the 7 or 8 months worth of property taxes needed up front based on the last sale price which was significanly higher in our case. The state refunds the money later when the new sale price is updated. It’s not really 1% of the purchase price as most agents will quote you. Plan to double or triple that.

[HLS]

[quote=Sandiagon] you will get better deal with direct lenders like Wellsfargo, Bofa, etc… Direct lenders never charge origination fee.
[/quote]

The above statement is ignorant and incorrect.

You will NOT “always” get a better deal from a direct lender. You will get a higher rate, and higher monthly payment for the life of the loan, that can cost you tens of thousands of dollars over the life of a loan for not paying an origination fee.

Banks are nothing more than mortgage brokers, except banks have fewer options.

Shopping around is fine, but have a clue what you are shopping for.

It’s often a foolish borrower that falls for a no point loan, esp at today’s rates.

For the OP, it’s impossible to know what closing costs are without knowing if you want to buy the rate down, what the title & escrow costs will be, and whether you are required to have an impound account for taxes and insurance.

It also depends on loan amount. Total closing costs of around 2% for a loan up to $400K, and bit less than 2% above that.

With a no point loan your cost should be less.
What is your rate with a no point loan ??

[HLS]

[quote=Sandiagon] you will get better deal with direct lenders like Wellsfargo, Bofa, etc… Direct lenders never charge origination fee.
[/quote]

The above statement is ignorant and incorrect.

You will NOT “always” get a better deal from a direct lender. You will get a higher rate, and higher monthly payment for the life of the loan, that can cost you tens of thousands of dollars over the life of a loan for not paying an origination fee.

Banks are nothing more than mortgage brokers, except banks have fewer options.

Shopping around is fine, but have a clue what you are shopping for.

It’s often a foolish borrower that falls for a no point loan, esp at today’s rates.

For the OP, it’s impossible to know what closing costs are without knowing if you want to buy the rate down, what the title & escrow costs will be, and whether you are required to have an impound account for taxes and insurance.

It also depends on loan amount. Total closing costs of around 2% for a loan up to $400K, and bit less than 2% above that.

With a no point loan your cost should be less.
What is your rate with a no point loan ??

[HLS]

[quote=Sandiagon] you will get better deal with direct lenders like Wellsfargo, Bofa, etc… Direct lenders never charge origination fee.
[/quote]

The above statement is ignorant and incorrect.

You will NOT “always” get a better deal from a direct lender. You will get a higher rate, and higher monthly payment for the life of the loan, that can cost you tens of thousands of dollars over the life of a loan for not paying an origination fee.

Banks are nothing more than mortgage brokers, except banks have fewer options.

Shopping around is fine, but have a clue what you are shopping for.

It’s often a foolish borrower that falls for a no point loan, esp at today’s rates.

For the OP, it’s impossible to know what closing costs are without knowing if you want to buy the rate down, what the title & escrow costs will be, and whether you are required to have an impound account for taxes and insurance.

It also depends on loan amount. Total closing costs of around 2% for a loan up to $400K, and bit less than 2% above that.

With a no point loan your cost should be less.
What is your rate with a no point loan ??

[HLS]

[quote=Sandiagon] you will get better deal with direct lenders like Wellsfargo, Bofa, etc… Direct lenders never charge origination fee.
[/quote]

The above statement is ignorant and incorrect.

You will NOT “always” get a better deal from a direct lender. You will get a higher rate, and higher monthly payment for the life of the loan, that can cost you tens of thousands of dollars over the life of a loan for not paying an origination fee.

Banks are nothing more than mortgage brokers, except banks have fewer options.

Shopping around is fine, but have a clue what you are shopping for.

It’s often a foolish borrower that falls for a no point loan, esp at today’s rates.

For the OP, it’s impossible to know what closing costs are without knowing if you want to buy the rate down, what the title & escrow costs will be, and whether you are required to have an impound account for taxes and insurance.

It also depends on loan amount. Total closing costs of around 2% for a loan up to $400K, and bit less than 2% above that.

With a no point loan your cost should be less.
What is your rate with a no point loan ??

[HLS]

[quote=Sandiagon] you will get better deal with direct lenders like Wellsfargo, Bofa, etc… Direct lenders never charge origination fee.
[/quote]

The above statement is ignorant and incorrect.

You will NOT “always” get a better deal from a direct lender. You will get a higher rate, and higher monthly payment for the life of the loan, that can cost you tens of thousands of dollars over the life of a loan for not paying an origination fee.

Banks are nothing more than mortgage brokers, except banks have fewer options.

Shopping around is fine, but have a clue what you are shopping for.

It’s often a foolish borrower that falls for a no point loan, esp at today’s rates.

For the OP, it’s impossible to know what closing costs are without knowing if you want to buy the rate down, what the title & escrow costs will be, and whether you are required to have an impound account for taxes and insurance.

It also depends on loan amount. Total closing costs of around 2% for a loan up to $400K, and bit less than 2% above that.

With a no point loan your cost should be less.
What is your rate with a no point loan ??

[SD Realtor]

Actually the 1% of the purchase price would be a decent quote for someone selling a home, (that is, the sellers side closing costs). For instance, a reasonable template would be as follows:

Sellers side basics –

-split escrow 50/50
-title insurance for buyer
-county transfer tax (1.10 for every 1000)
-homeowners warranty (400)
-NHD and CLUE (100 or so)
-miscellaneous fees for loan payoff
-transaction coordination/doc fees

**All the above should total to somewhere between .75-1.0% of the purchase price.

Other costs for sellers to expect –

– Termite inspection
– Remediation and treatment due to termites
– Repairs requested by buyer
– Credits requested by buyer

Prorations sellers should not ignore –

– Property tax proration
– Mortgage interest proration

**************************************************

Buyers side are pretty much all due to your financing fees. Still there are some no brainers.

– Split escrow
– Appraisal (350-375)
– Physical Inspection (350-400)
– Recording fee (50-75)
– Misc doc or transaction coordination fee

**Financing fees

– Loan origination fee
– Loan discount points
– Misc fees (underwriting fees/doc fees)

**
– Hazard Insurace
– Property taxes
– Title insurance for your lender

*********

All in all for buyers I would estimate about 2-3% depending on how much you buy down your loan. Obviously the more you buy it down the more you will pay at closing.

Finally the 1% for sellers is not including large credits that buyers are asking for more and more these days.

[SD Realtor]

Actually the 1% of the purchase price would be a decent quote for someone selling a home, (that is, the sellers side closing costs). For instance, a reasonable template would be as follows:

Sellers side basics –

-split escrow 50/50
-title insurance for buyer
-county transfer tax (1.10 for every 1000)
-homeowners warranty (400)
-NHD and CLUE (100 or so)
-miscellaneous fees for loan payoff
-transaction coordination/doc fees

**All the above should total to somewhere between .75-1.0% of the purchase price.

Other costs for sellers to expect –

– Termite inspection
– Remediation and treatment due to termites
– Repairs requested by buyer
– Credits requested by buyer

Prorations sellers should not ignore –

– Property tax proration
– Mortgage interest proration

**************************************************

Buyers side are pretty much all due to your financing fees. Still there are some no brainers.

– Split escrow
– Appraisal (350-375)
– Physical Inspection (350-400)
– Recording fee (50-75)
– Misc doc or transaction coordination fee

**Financing fees

– Loan origination fee
– Loan discount points
– Misc fees (underwriting fees/doc fees)

**
– Hazard Insurace
– Property taxes
– Title insurance for your lender

*********

All in all for buyers I would estimate about 2-3% depending on how much you buy down your loan. Obviously the more you buy it down the more you will pay at closing.

Finally the 1% for sellers is not including large credits that buyers are asking for more and more these days.

[SD Realtor]

Actually the 1% of the purchase price would be a decent quote for someone selling a home, (that is, the sellers side closing costs). For instance, a reasonable template would be as follows:

Sellers side basics –

-split escrow 50/50
-title insurance for buyer
-county transfer tax (1.10 for every 1000)
-homeowners warranty (400)
-NHD and CLUE (100 or so)
-miscellaneous fees for loan payoff
-transaction coordination/doc fees

**All the above should total to somewhere between .75-1.0% of the purchase price.

Other costs for sellers to expect –

– Termite inspection
– Remediation and treatment due to termites
– Repairs requested by buyer
– Credits requested by buyer

Prorations sellers should not ignore –

– Property tax proration
– Mortgage interest proration

**************************************************

Buyers side are pretty much all due to your financing fees. Still there are some no brainers.

– Split escrow
– Appraisal (350-375)
– Physical Inspection (350-400)
– Recording fee (50-75)
– Misc doc or transaction coordination fee

**Financing fees

– Loan origination fee
– Loan discount points
– Misc fees (underwriting fees/doc fees)

**
– Hazard Insurace
– Property taxes
– Title insurance for your lender

*********

All in all for buyers I would estimate about 2-3% depending on how much you buy down your loan. Obviously the more you buy it down the more you will pay at closing.

Finally the 1% for sellers is not including large credits that buyers are asking for more and more these days.

[SD Realtor]

Actually the 1% of the purchase price would be a decent quote for someone selling a home, (that is, the sellers side closing costs). For instance, a reasonable template would be as follows:

Sellers side basics –

-split escrow 50/50
-title insurance for buyer
-county transfer tax (1.10 for every 1000)
-homeowners warranty (400)
-NHD and CLUE (100 or so)
-miscellaneous fees for loan payoff
-transaction coordination/doc fees

**All the above should total to somewhere between .75-1.0% of the purchase price.

Other costs for sellers to expect –

– Termite inspection
– Remediation and treatment due to termites
– Repairs requested by buyer
– Credits requested by buyer

Prorations sellers should not ignore –

– Property tax proration
– Mortgage interest proration

**************************************************

Buyers side are pretty much all due to your financing fees. Still there are some no brainers.

– Split escrow
– Appraisal (350-375)
– Physical Inspection (350-400)
– Recording fee (50-75)
– Misc doc or transaction coordination fee

**Financing fees

– Loan origination fee
– Loan discount points
– Misc fees (underwriting fees/doc fees)

**
– Hazard Insurace
– Property taxes
– Title insurance for your lender

*********

All in all for buyers I would estimate about 2-3% depending on how much you buy down your loan. Obviously the more you buy it down the more you will pay at closing.

Finally the 1% for sellers is not including large credits that buyers are asking for more and more these days.

[SD Realtor]

Actually the 1% of the purchase price would be a decent quote for someone selling a home, (that is, the sellers side closing costs). For instance, a reasonable template would be as follows:

Sellers side basics –

-split escrow 50/50
-title insurance for buyer
-county transfer tax (1.10 for every 1000)
-homeowners warranty (400)
-NHD and CLUE (100 or so)
-miscellaneous fees for loan payoff
-transaction coordination/doc fees

**All the above should total to somewhere between .75-1.0% of the purchase price.

Other costs for sellers to expect –

– Termite inspection
– Remediation and treatment due to termites
– Repairs requested by buyer
– Credits requested by buyer

Prorations sellers should not ignore –

– Property tax proration
– Mortgage interest proration

**************************************************

Buyers side are pretty much all due to your financing fees. Still there are some no brainers.

– Split escrow
– Appraisal (350-375)
– Physical Inspection (350-400)
– Recording fee (50-75)
– Misc doc or transaction coordination fee

**Financing fees

– Loan origination fee
– Loan discount points
– Misc fees (underwriting fees/doc fees)

**
– Hazard Insurace
– Property taxes
– Title insurance for your lender

*********

All in all for buyers I would estimate about 2-3% depending on how much you buy down your loan. Obviously the more you buy it down the more you will pay at closing.

Finally the 1% for sellers is not including large credits that buyers are asking for more and more these days.

[SanDiegoDave]

Here is an item by item breakdown of closing costs and where the lenders pad in extra for themselves. It’s from 2006. Prices may be different by the same principles apply.

http://abcnews.go.com/gma/business/Story?id=1704406&page=1

[SanDiegoDave]

Here is an item by item breakdown of closing costs and where the lenders pad in extra for themselves. It’s from 2006. Prices may be different by the same principles apply.

http://abcnews.go.com/gma/business/Story?id=1704406&page=1

[SanDiegoDave]

Here is an item by item breakdown of closing costs and where the lenders pad in extra for themselves. It’s from 2006. Prices may be different by the same principles apply.

http://abcnews.go.com/gma/business/Story?id=1704406&page=1

[SanDiegoDave]

Here is an item by item breakdown of closing costs and where the lenders pad in extra for themselves. It’s from 2006. Prices may be different by the same principles apply.

http://abcnews.go.com/gma/business/Story?id=1704406&page=1

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