Cut Those Closing Costs

FYI -- Of course New York Fees might be slightly higher. For more info click this link:

SMARTMONEY

Closing Costs Average Charge Description
Points 1 point equals 1% of the total loan amount. These are fees lenders demand upfront in exchange for a lower rate, with each point equaling 1% of the mortgage value. As a general rule, the more points a buyer pays up front, the lower the interest rate on the mortgage.

Application fee $274 Most lenders will charge an application fee.

Credit check $26 Only in rare circumstances will a lender waive the fee for a credit check.

Attorney's fee $350-$1,200 Fees could be even higher in urban areas. In some regions of the country, it's more common to hire a title agent.

Lender's attorney fee $399 If you make some noise, the lending officer may drop this fee.

Title search $217 A title search is done to make sure there aren't any unpaid mortgages or tax liens on the property.

Title insurance $360 Even if the title search comes up clean, a lender will often require insurance to guarantee that the title is clean.

Appraisal fee $315 Your lender will most likely want a statement of your property's value from an independent appraiser.

Inspections $85 Some lenders may require that your property is also surveyed, which could cost another $200.

Local fees (recording fees) $95 This fee will vary greatly by region.

Documentation preparation $204 Technically, this covers the preparation of the final legal papers, but it's really just a junk fee.

Source: HSH Associates

Re: Cut Those Closing Costs

so assuming that I took out a mortgage with 0 points, my closing costs (even with junk fees) should really only be about $3200???

so why are people paying SO MUCH!!!!!!!!!

Re: Cut Those Closing Costs

Don't forget a large part of closing costs- at least here in LA and NY where they are so high- is prepaid property taxes- that could increase your closing costs by 2,000 to 3,000.

Re: Cut Those Closing Costs

I think these numbers are on the very low end for NY. Our engineer inspection cost $400 (not the $85 they listed) and we are buying a condo.

Re: Cut Those Closing Costs

according to by DH - this is not possible

b/c in NY- there is a state mortage tax of 1% (of the total loan amount)on LI and Upstate and it goes as high as 2.75% in the city

depending on the loan size and property type

Re: Cut Those Closing Costs

our inspection was also was 400.

Re: Cut Those Closing Costs

Re: Cut Those Closing Costs

I wish our closing cost would only cost us this much! These figures are very low for NY.

.

Re: Cut Those Closing Costs

Those figures are pathetic for NY. And that's why everyone goes to closing thinking there mortgage broker or bank screwed them. Well 1/2 the time they do low-ball the good faith estimate anyway, but then they see an article like this and think they got ripped off. It's such a shame.

Edited for spelling

Message edited 6/14/2006 10:44:29 AM.

Re: Cut Those Closing Costs

Definitely not accurate for NY.

We just closed yesterday...our attorney was $950 - and that was the middle # for the 3 atty's we got recommendations on (one atty wanted $2500).

The bank atty was $500...title ins., taxes and other fees going to the Title company - over $6k.

Re: Cut Those Closing Costs

BUMP

Re: Cut Those Closing Costs

I agree - they don't mention interest, taxes or the first mortgage payment, but I guess thats technically not closing costs, just money due at closing

Re: Cut Those Closing Costs

These fees are SOOOOO off it is not funny. I used to work in title industry. Insurance alone can run 800-1500 and even more depending on what zone you are in and how much the home is. Lenders attorney? No less than $700 in this area. idiots