Loan Estimate and closing cost question.

*Please do not move*


We are due to close in about a month on our house. Our Loan estimate for closing costs are $27,000. Our lender has explained that we likely have to pay 6 months of taxes in addition to the 5 months required. Taxes are $12,000/year so that would be an additional $6000.00. This number still seems very high to me. Most people I spoke to paid around 13-18k for closing. Our lawyer told us to expect to pay the 27. Does $27,000.00 seem high? And how close was your loan estimate to what you actually paid in closing costs? The selling price for the house is 445k in Suffolk. Any info would be greatly appreciated! We are so confused by this whole process!!

eta- we are getting a 30-year fixed conventional loan with 10% down if that matters.

Message edited 9/7/2017 11:52:56 AM.

Loan Estimate and closing cost question.

The 27k seems about right to me! I believe it all depends on the amount of the loan you are taking out. Our loan was half of yours and we paid roughly about 13k at the time.

Re: Loan Estimate and closing cost question.

The $27,000 may already include the tax escrow.

Loan Estimate and closing cost question.

Our closing costs were up there. Maybe 25k. But our purchase price and taxes were much higher tHan yours. It's tough to say because each situation is somewhat unique. Taxes and fees associated with home buying have gone up drastically in the last 2 to 3 years too.

Loan Estimate and closing cost question.

if you have the loan estimate, it should break down the closing costs vs. escrows (taxes/insurance) and payments due at closing that are not necessarily closing costs. Closing costs refer to the bank fees, title costs and third party fees associated with the loan (appraisal, credit report, etc). The taxes due are not considered closing costs just because they nee to be at closing. Any taxes due within 60 days of closing need to be paid at closing and then the bank will escrow for the future taxes (if you are escrowing) and collect a cushion of 2-3 months, so that may be why costs seem high. I feel like all my borrowers have much higher costs than anticipated when closing in August & September because taxes are due 10/1 for Nassau.

Re: Loan Estimate and closing cost question.

27k is very high without escrows included.

Re: Loan Estimate and closing cost question.

Since you are taking out close to a jumbo loan, yes, I would expect higher closing costs. You also will end up needing to pay the October bill, plus reimburse the prior owner for September. if you are escrowing your taxes and insurance, then, yes, that sounds about right.

Re: Loan Estimate and closing cost question.

Thanks for the replies. Escrow is included that number. do some lenders require more in escrow and homeowners insurance in escrow than others? I got a loan estimate and it was 9k less in closing costs(including escrow) because they said they don't require as many prepaid months in taxes/ins. Does this sound right? We don't want any surprises at closing but am very tempted to go with the other mortgage company. Tia!