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How Much Can I Afford?

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

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).

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.
2. Closing Fees Paid by the Buyer: (Buyer’s closing cost)
Escrow fees: $400 to $1,200 to handle purchase related documents and funds.
Homeowners Insurance: $300 to $1,500 depending on the price of the property.
Title Insurance: $300 to $1,000 depending on the price of the property.
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.
Legal fees: about $450 in eastern states, zero in western states where lawyers are not required.
Inspections: $250 to $500 for professional inspection of the property
Private Mortgage Insurance (PMI): About $400 for Buyers with less than a 20% down payment.
Prepaid loan interest: Buyer must pay interest on the mortgage loan for days between closing and the due date of the first mortgage payment.
Recording: about $50 to record the deed and mortgage.
Courier fees: Usually less than $50.
Notary: $20 per signature per buyer to have signature verified by a notary (usually the Escrow officer, or closing attorney).
Typical Buyer’s closing cost for a $100,000 home (1.5%) $1,500
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