Closing Cost Information
Closing Cost Information
Closing costs will vary, depending on the financing arrangement and on selling price of the home, and these are approximations. Typically, closing costs paid by the buyer include the following:
- Loan Origination Fee – 1% of the loan amount.
- Discount Points – 1% to 2% of the loan amount, depending on the mortgage interest rate.
- Appraisal Fee – $475
- Credit Report Fee – $50
- Pre-Paid Mortgage Interest – The interest pre-paid by the purchaser for the period between the closing date and the end of the current month.
- Hazard Insurance Premium – Lenders require that the hazard insurance be pre-paid for one year and that two additional months’ premium be held in escrow to cover the first two months of the following year. The first year’s premium is approximately .3% of the selling price.
- City / County Property Taxes – A reimbursement to the seller for pre-paid property taxes covering the period between the closing and the end of the tax period.
- Title Exam / Closing Fee – The attorney’s fee is generally $350 to $500.
- Title Insurance – A one-time premium, approximately .4% of the selling price.
- Private Mortgage Insurance – Insurance required by lenders, paid for by purchasers, for loans with loan to value ratio greater than 80%.
- Recording Fees & Taxes – These fees cover recording of the deed and the mortgage with the city or county and the state. They are approximately .4% of the selling price.
- Survey – The fee for the survey, if required, will be in the range of $200 – $250. The figure will be higher if acreage is involved.