Spinoff to closing costs - where does this money go?

why does it cost SO MUCH more to close on a house here than in other states?

how does the cost break down? who gets what?

Re: Spinoff to closing costs - where does this money go?

NYS Mortgage recording tax is a big one.

Then there are your property taxes if you escrow (we had to escrow, so that added about $4000 to our closing costs)

Then you have some bank fees, appraisal fees, any mortgage broker fees, pay for the rest of the oil in the tank.

Re: Spinoff to closing costs - where does this money go?

Re: Spinoff to closing costs - where does this money go?

I don't remember, but it's a hefty amount. Maybe around $3500? I'd have to dig out my closing papers to see.

ETA: I do know that our bank fees were really low. It was mostly recording tax and property taxes that we paid at closing. I think our closing fees were around $11,000 and it was only about $2000 in bank fees I think.

Message edited 7/19/2008 10:19:00 AM.

Re: Spinoff to closing costs - where does this money go?

Mortgage Tax is based on the mortgage you take. If you are buying in Nassau/Suffolk then it is .80 x Mortgage Amount (the true Mortgage tax is 1.05% but the bank pays .25). In the city it depends on the mortgage you take: (a) under $500,000 then it it is 2.05% (purchaser pays 1.8 and the bank pays .25) and over $500,000 is 2.175% (I always forget this percentage but it is around this amount) (bank pays .25 of whatever the amount is).

In addition there are bank fees (appraisal, points to buy down the rate, flood search fee, tax search fee, short term interest (this could be a lot if you close the beginning of a month, if you close the end it is less)) and taxes (real estate) are a big one. The taxes might be a big one because you are escrowing plus you have to give the seller an adjustment. SOmetimes it works in your favor and you get the adjustment. The other thing is if you are closing within 60 days of taxes being due then you will have to pay that to the title company as well.

Message edited 7/19/2008 10:58:27 AM.