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Closing Costs

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  • #31
    Which taxes

    Holy ************************. Those taxes are absurd.

    Did not get an owner’s policy with both of my home purchases. Title insurance is an absolute waste, or at the least is overpriced. No sense in doubling the insanity.
    Click to expand...

    Which taxes specifically?  The mortgage ones (aren't those determined by the state?) or the property taxes?


    • #32
      Tax stamps


      • #33

        Update to this thread – getting close to closing and wanted some opinions on a couple of things.  The total costs are higher than initially estimated but this is entirely due to the prepaid taxes.

        So at this point, the loan costs including the title company which we obtained independent of the lender are fixed (total is ~$3,500).  As are the prepaid amounts for property tax and homeowner’s insurance as well as the amount due to escrow (total is ~14,000 – they want 1 year of property tax which by itself is 9k).

        That leaves two things:

        1.  Taxes – so the “Tax Stamp for State” is being assigned to the seller (~1,800) and the “Tax Stamp for County” is being assigned to me (~$4,300).  Is this how it is always done?

        2.  Owner Title Insurance – $1,800 – My understanding is that this is optional.  Is this something that most of you have obtained or should I forgo this cost?

        Thank you all in advance!
        Click to expand...

        There are so many variations of taxes when you get to state and local level and that’s what you are experiencing. At federal level (and trickling down), annual real estate taxes (again, a local creation but pretty standard) are prorated based upon the closing date and who has already paid (or will be required to) per local law.

        Miscellaneous taxes such as these are state/local creations and totally dependent the situs of the property. Many variations and flavored descriptors. Government bu11$1h1t but no way around it.....
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087


        • #34
          What do you think is so outrageous about these fees? They don't look that bad to me at all. Anything that says "tax" next to it is absolutely non-negotiable. The fee adjustment in the last like looks pretty good. Keep in mind, they are just estimates - actual costs, like the appraisal, can be different but should be close.

          Also, depending on the lender it's not unusual to successfully negotiate the fees. I always got the application fee waived.

          Also, 30 year rates should be a little lower now unless you're looking at a jumbo loan and/or PMI is built in since it's a 0 down loan. Keep in mine you are paying an extra 20% in doc stamp taxes over an 80/20 loan as the tax is assessed on the loan amount.

          On a personal note, I'm not into 0 down loans or 30 year loans - but everyone's circumstances are different.


          • #35
            Thanks for the reply. It’s not a jumbo loan but my rate is already locked and we’re closing so soon that I think I’m stuck with it.