Menu

Closing Costs

Home Mortgages and Home Buying Closing Costs

  • Avatar orthodoc2018 
    Participant
    Status: Physician
    Posts: 64
    Joined: 07/18/2018
    Splash Refinancing Bonus

    I received the following estimate from a potential lender.  They seem to be offering among the best rates (3.75%) for 30-year fixed with 0% down.  They’ve been great to work with so far but I just wanted to make sure none of these fees seemed outrageous.  Obviously the prepaying property taxes isn’t a big issue and the per diem interest will vary based on what time of the month I close.

    Also, are there any other major costs I should look out for?

    Thank you!!!

    APPLICATION FEE $995.00
    APPRAISAL FEE $580.00.
    CREDIT REPORT FEE – JOINT $36.80
    FLOOD CERTIFICATE FEE $7.50
    MTG ELECTRONIC REGISTRY SYSTEM $11.95
    TAX SERVICE FEE $80.81
    TITLE – DOC PREPARATION FEE $65.00
    TITLE – ENDORSEMENT FEE $379.80
    TITLE – LENDER TITLE INSURANCE $1,798.00
    TITLE – SEARCH/ABSTRACT FEE $150.00
    TITLE – SETTLEMENT CLOSING FEE $512.00
    RECORDING FEE FOR DEED $195.00
    RECORDING FEE FOR MORTGAGE $200.50
    TAX STAMP FOR COUNTY MORTGAGE $4,400.00
    PER DIEM INTEREST ($45.21 per day from 6/7/19 to 7/1/19) $1,085.04
    HAZARD INSURANCE (1 months @ $100.00 per month) $100.00
    SCHOOL PROPERTY TAXES (12 months @ $805.57 per month) $9,666.84
    TOWN PROPERTY TAX (9 months @ $273.53 per month) $2,461.77
    AGGREGATE ADJUSTMENT $-2,561.81
    TITLE – OWNER TITLE INSURANCE $563.00

    #221302 Reply
    Avatar jhwkr542 
    Participant
    Status: Physician
    Posts: 1217
    Joined: 02/15/2016

    Some look high, but some you won’t be able to change I bet. The property taxes are usually based on home value, so nothing you can do there (though it looks like an expensive home). The title insurance looks high as well as the application and maybe appraisal fees. This is part of shopping for a mortgage people tend to ignore but can make a difference.

    #221311 Reply
    Avatar orthodoc2018 
    Participant
    Status: Physician
    Posts: 64
    Joined: 07/18/2018

    Thanks – home to me doesn’t seem very expensive at all – $440k but it’s in the northeast where property taxes are killer.

    I’ll look around a little and see what others are offering.  Not sure anyone will really be able to match it so closely at 0% down though.  I’ll have to do some good old arithmetic and see if a slightly higher rate is worth some lower fees.

    #221312 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7794
    Joined: 01/09/2016

    Interesting – we’ve had a wave of clients wanting us to analyze closing costs to refi in the last couple of weeks. As a result, I’ve seen several of these lately. This list seems to have more annoying extra costs than usual, but I don’t think many of them have anything to do with the specific bank other than application fee, appraisal fee, and tax service fee (any bankers out there, please correct me if I’m wrong). What it looks like is that there are a lot of local/state regulations piling on at a cost to borrowers, such as Tax Stamp for County Mortgage of $4,400 – that sounds outrageous to me. I suppose the Aggregate Adjustment of ($2,561.81) is supposed to mitigate part of these costs. You’re still paying ~$7,500 to get this done, right?

    Nothing you can do about the prepaid tax and insurance, you’re just banking that. And they’ve got to prorate interest, too, of course.

    What are you going from to get 3.75%? That still sounds high to me. Have you shopped around?

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #221313 Reply
    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 2503
    Joined: 01/03/2017

    They’re all outrageous but I doubt any of them are negotiable. Unfortunately, fees are customary for any closing.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #221314 Reply
    Liked by SLC OB, Tangler, Zaphod
    Avatar orthodoc2018 
    Participant
    Status: Physician
    Posts: 64
    Joined: 07/18/2018

    Interesting – we’ve had a wave of clients wanting us to analyze closing costs to refi in the last couple of weeks. As a result, I’ve seen several of these lately. This list seems to have more annoying extra costs than usual, but I don’t think many of them have anything to do with the specific bank other than application fee, appraisal fee, and tax service fee (any bankers out there, please correct me if I’m wrong). What it looks like is that there are a lot of local/state regulations piling on at a cost to borrowers, such as Tax Stamp for County Mortgage of $4,400 – that sounds outrageous to me. I suppose the Aggregate Adjustment of ($2,561.81) is supposed to mitigate part of these costs. You’re still paying ~$7,500 to get this done, right?

    Nothing you can do about the prepaid tax and insurance, you’re just banking that. And they’ve got to prorate interest, too, of course.

    What are you going from to get 3.75%? That still sounds high to me. Have you shopped around?

    Click to expand…

    Yeah lots of local/state fees – welcome to NY!

    Everyone else I have inquired with is offering rates of ~4% and most want 5% down.  I could definitely get it lower with an ARM or 15-year mortgage.  Hadn’t really considered it that strongly but maybe I should…

    #221317 Reply
    Liked by Tangler
    DerekLava DerekLava 
    Participant
    Status: Accountant, Spouse
    Posts: 23
    Joined: 01/20/2017

    Mind if I ask which lender is offering the 30yr, 3.75% with $0 down?  Starting to gather information for next year.

    #221318 Reply
    Liked by Tangler
    Avatar orthodoc2018 
    Participant
    Status: Physician
    Posts: 64
    Joined: 07/18/2018

    Mind if I ask which lender is offering the 30yr, 3.75% with $0 down?  Starting to gather information for next year.

    Click to expand…

    Sure – KeyBank.

    That’s with “relationship pricing” so you’ll need a checking and savings account with them.  I was able to find a checking with no monthly fee and a savings account that just requires a $300 balance to waive the fee.

    #221322 Reply
    Liked by DerekLava
    ENT Doc ENT Doc 
    Participant
    Status: Physician
    Posts: 3353
    Joined: 01/14/2017

    Some of those fees do look absurd. Shop around the title companies and you might find a little bit of difference. Real estate is like coming out of the swamp in ‘nam. Covered in leeches.

    #221380 Reply
    Avatar orthodoc2018 
    Participant
    Status: Physician
    Posts: 64
    Joined: 07/18/2018
    Earnest refinancing bonus

    Absurd is why I would use to describe it when I saw it!

    So the title is something I obtain independent of the mortgage lender?

    Just looked briefly and many places seem to suggest that title insurance rates are regulated and fixed in NY. Anyone know anything about that? Same thing applies to the mortgage tax apparently. In any event, it makes me happy I’m not buying more house!

    #221384 Reply
    ENT Doc ENT Doc 
    Participant
    Status: Physician
    Posts: 3353
    Joined: 01/14/2017

    Absurd is why I would use to describe it when I saw it!

    So the title is something I obtain independent of the mortgage lender?

    Just looked briefly and many places seem to suggest that title insurance rates are regulated and fixed in NY. Anyone know anything about that? Same thing applies to the mortgage tax apparently. In any event, it makes me happy I’m not buying more house!

    Click to expand…

    Keep in mind these numbers came from a lender.  They always cast a worst case scenario and are not the title company nor are they the purchase contract.  In some areas the seller pays the title insurance/fees, not the buyer.  You need to look at your purchase contract and know your regional practice to know that.  But let’s say for the sake of argument that you, the buyer, are paying for the title insurance.

    Call around to title companies.  The insurance part itself is indeed fixed – you probably won’t find much variation on that at all.  The fees, however, you might find a few hundred dollar swing in one direction or another.  Since there are lots of title companies and the prices are typically close to one another the only way to really compete for business is on quality – do they have an in-house attorney who would review trust documents for free, do they have a notary who could come to your work on closing for free so you don’t have to miss work.  Ask about anything and everything that would make your situation as convenient as possible.  If one is more costly than another, tell the costlier one who might have better services outright – your buddy down the road is quoting me X and you are quoting me Y, can you give me a discount to their price if I go with you?

    YOU pick the title company if you’re paying for title.  Yes, the tax is probably a transfer tax – another complete BS charge that has zero things to do with capital gains on the property or not.  Just another fixed cost to account for in this leech infested swamp you now find yourself in.

    #221516 Reply
    Avatar udrag14 
    Participant
    Status: Physician
    Posts: 5
    Joined: 09/20/2018

    I just closed a house in NY with KeyBank, previously Laurel Road. My numbers are very similar to yours.

    I also dont know where you are in the process but I was quoted around 5 to 6K more fees and then it dropped near closing when a lot of them were assigned to the seller. it seems like the systen assigns thr buyer all the costs and then your lawyer will seperate then.

    In general, most of the charges are standard. Most of the cost is actually in the escrow. They require a lot more cushion compared to other lenders.

    If you go with Keybank, make sure you are a AMA member. You get additional 1000 dollars off for a 60 dollar membership.

    #221524 Reply
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 2619
    Joined: 09/18/2018
    #221533 Reply
    Avatar justlearning 
    Participant
    Status: Other Professional, Spouse
    Posts: 117
    Joined: 08/15/2017

    we used Costco for mortgage and application fee was waived from the lender and rates were competitive as well. I think we saved around $1300 from the fees etc. You may want to check it out.

    https://costcofinance.com/

     

    #221535 Reply
    hatton1 hatton1 
    Participant
    Status: Physician
    Posts: 3030
    Joined: 01/11/2016

    Who knew Costco does a mortgage too.

    #221539 Reply

Reply To: Closing Costs

In case of a glitch or error, please save your text elsewhere, clear browser cache, close browser, open browser and refresh the page.

Notifications Mark all as read  |  Clear