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Closing Costs

Home Mortgages and Home Buying Closing Costs

  • Avatar orthodoc2018 
    Participant
    Status: Physician
    Posts: 80
    Joined: 07/18/2018
    Earnest refinancing bonus

    Which taxes

    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.

    Click to expand…

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

    #236898 Reply
    ENT Doc ENT Doc 
    Participant
    Status: Physician
    Posts: 3571
    Joined: 01/14/2017

    Tax stamps

    #236931 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 8366
    Joined: 01/09/2016

    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…..

    Johanna Fox Turner, CPA, CFP: I am not your financial advisor; any responses are for general purposes only
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #236936 Reply
    Liked by ENT Doc
    Avatar EntrepreneurMD 
    Participant
    Status: Physician
    Posts: 407
    Joined: 06/10/2019

    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.

    #237102 Reply
    Avatar orthodoc2018 
    Participant
    Status: Physician
    Posts: 80
    Joined: 07/18/2018

    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.

    #237106 Reply

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