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Closing Costs

Home Mortgages and Home Buying Closing Costs

  • Avatar orthodoc2018 
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    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/

     

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    Costco does everything….

    Does Costco offer doctor loans or only conventional?  Couldn’t find anything when I put in that I want to put 0 or 5% down.

    #221649 Reply
    Avatar orthodoc2018 
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    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.

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    Thanks for the info – AMA is showing up as $105 for me, still well worth it if it gets me $1k off!

    I’ll take whatever I can get as far as anything being assigned to the seller.  When I looked it up it seems that title insurance in NY falls on the buyer.  Seems like not too many of these fees are lender specific so I don’t see any reason based on what I’ve heard to not go with them if they are offering the best rate at the down payment I’m looking for.

    Separate issue is whether or not to just go ahead and do a 7/1 ARM with them at 3.125%.  Mortgage will be just under 1.5x my base salary but with bonus in just my first year it’s more like 1.2x income and that ratio should just get even better.  Haven’t really thought much yet about whether that would be a better route to go.

    #221651 Reply
    jfoxcpacfp jfoxcpacfp 
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    Believe you need to distill the decision down to what the decision should rest upon. What (<i>i think) </i>is most helpful is calculating months to break even (going simple here and not looking at investing the difference or any other complexities) based on the rate savings versus the OOP costs. You can Google and find some neat calculators.

    In general, the longer you keep the property, the more closing costs you can spend and come out ahead – and vice versa. Of course, you want to spend as little as possible, but this calc can give you context for comparing offers and making the final decision of refi or not.

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

    #221683 Reply
    Avatar justlearning 
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    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/

     

    Click to expand…

    Costco does everything….

    Does Costco offer doctor loans or only conventional?  Couldn’t find anything when I put in that I want to put 0 or 5% down.

    Click to expand…

    I don’t think they offer doctor loans, we went with conventional loan but you may check with one of their lenders.

    #221796 Reply
    Lordosis Lordosis 
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    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

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    We closed on a similar priced house in upstate NY end of last year.  Your property and school taxes seem about right. but Obvioulsy this depends on county. Not sure what that Tax stamp is.

    My appraisal was not so much but that is not going to make a huge  impact.

    The title fees and insurance seem high.  Might want to shop around for that.

     

    The inspection will be another cost and that will run about $500 or so depending on how much you need.

    Also lawyer fees are not listed.  That can run 1-2K but you can shop around for that.

    Welcome to NY!

    “Never let your sense of morals prevent you from doing what is right.”

    #221821 Reply
    Avatar orthodoc2018 
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    We closed on a similar priced house in upstate NY end of last year.  Your property and school taxes seem about right. but Obvioulsy this depends on county. Not sure what that Tax stamp is.

    My appraisal was not so much but that is not going to make a huge  impact.

    The title fees and insurance seem high.  Might want to shop around for that.

     

    The inspection will be another cost and that will run about $500 or so depending on how much you need.

    Also lawyer fees are not listed.  That can run 1-2K but you can shop around for that.

    Welcome to NY!

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    I think the tax stamp is the mortgage recording tax.  In many counties in NY it’s 1% which is exactly as it’s quoted here.  I think in NYC it may be closer to 2% even.

    Title fees and insurance I think are relatively fixed by the state but I’ll shop around for sure just in case.  I think for inspection we’ll need overall inspection, radon testing, and termite testing.  Still waiting on the quote for that.  Seems like the prices for these things don’t vary too much and most are just the nature of the beast.

    #221827 Reply
    Lordosis Lordosis 
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    I think the tax stamp is the mortgage recording tax.  In many counties in NY it’s 1% which is exactly as it’s quoted here.  I think in NYC it may be closer to 2% even.

    Title fees and insurance I think are relatively fixed by the state but I’ll shop around for sure just in case.  I think for inspection we’ll need overall inspection, radon testing, and termite testing.  Still waiting on the quote for that.  Seems like the prices for these things don’t vary too much and most are just the nature of the beast.

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    Gotcha it was called something different here but yes we also payed 1%.  I think it was called transfer tax.

    My goal with inspections was to get the seller to knock off more money then the cost of the inspection.  I am 4 for 4!   Most sellers would rather reduce price then fix junk themselves.

    “Never let your sense of morals prevent you from doing what is right.”

    #221829 Reply
    Avatar ajm184 
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    Yes, most of the listed items are related to the Title Insurance or stub interest/property tax expense.

    A couple of points:a. Maybe it a NY thing, but paying a year of school property taxes seems odd. To me, this tax should be pro-rata between the purchase timing of the home and when the tax is assessed.
    b. The Application Fee and Credit Report Fee are definitely bank fees. The amounts both seem rather high, $400 – $500 was number I had 5 years ago for the application fee and the credit report was like $18 for both myself and wife. I would ask the bank about these fees specifically to make them squirm a bit and see if you can negotiate these figures down (waive in the case of the credit report).
    c. Unless the R/E contract specifies buyer is responsible for seller title insurance, then this cost should be paid by the seller to be deducted from proceeds received.

    #221835 Reply
    Liked by ENT Doc
    Avatar robaxin 
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    Are closing costs tax deductible?

    #221869 Reply
    jfoxcpacfp jfoxcpacfp 
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    Are closing costs tax deductible?

    Click to expand…

    Points are in certain circumstances

     

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

    #221873 Reply
    ACN ACN 
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    Keybank mortgage in the midwest. $10-12k final costs per the closing documents… Ridiculous.

    This whole process and realtors are a moderated for colorful language (c’mon, let’s watch it, mods! 😳) scam. Feel like I get nickeled and dimed at every corner with this purchase.

    If you're ever having a bad day, just remember in 1976 Ronald Wayne sold his 10% stake in Apple for $2,300.

    #221875 Reply
    Avatar adventure 
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    TITLE – LENDER TITLE INSURANCE $1,798.00

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    I loathe title insurance, and think it’s a total scam. Maybe I just don’t really understand it. Do we really think the title process in America is that faulty?

    I’m sure it has some value in the world, I just can’t see it.

    #222093 Reply
    Avatar adventure 
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    Keybank mortgage in the midwest. $10-12k final costs per the closing documents… Ridiculous.

    This whole process and realtors are a moderated for colorful language (c’mon, let’s watch it, mods! ) scam. Feel like I get nickeled and dimed at every corner with this purchase.

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    Agreed. Colorful language included.

    #222094 Reply
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    Avatar orthodoc2018 
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    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!

    #236893 Reply
    ENT Doc ENT Doc 
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    Holy hell. 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.

    #236896 Reply

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