What you can buy depends on:
What you can afford depends on:
Alternate (Government) Estimate of what you can afford
Closing Costs come in two types:
Mortgage loan origination fees & Closing fees paid by the Buyer
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1. Mortgage loan origination fees:
At $1,600 t0 $2,400 on a $80,000 mortgage loan, this is by far the largest closing fee (2% – 3% of the mortgage loan). |
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By custom in most states, Loan origination fees are paid by the Seller and therefore not included in our estimates of Buyer’s closing cost. |
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2. Closing Fees Paid by the Buyer: (Buyer’s closing cost) |
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Escrow fees: $400 to $1,200 to handle purchase related documents and funds. |
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Homeowners Insurance: $300 to $1,500 depending on the price of the property. |
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Title Insurance: $300 to $1,000 depending on the price of the property. |
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Property taxes: For a July close, Buyer must reimburse Seller for August and September taxes paid by Seller as part of quarterly taxes due and paid on July first. |
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Legal fees: about $450 in eastern states, zero in western states where lawyers are not required. |
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Inspections: $250 to $500 for professional inspection of the property |
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Private Mortgage Insurance (PMI): About $400 for Buyers with less than a 20% down payment. |
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Prepaid loan interest: Buyer must pay interest on the mortgage loan for days between closing and the due date of the first mortgage payment. |
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Recording: about $50 to record the deed and mortgage. |
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Courier fees: Usually less than $50. |
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Notary: $20 per signature per buyer to have signature verified by a notary (usually the Escrow officer, or closing attorney). |
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Typical Buyer’s closing cost for a $100,000 home (1.5%) |
$1,500 |
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