Tuesday, June 16, 2009

Closing Cost Estimates

Posted by The Jill Smith Team at 12:50 PM
As with a lot of purchases and services one pays for in life, buying a home also involves fees and expenses beyond just paying the agreed upon sale price. The break down of closing costs was given to me by Steve Lupton with ISB Mortgage (908-522-6500) and represents a ballpark estimate for closing costs for 2 hypothetical purchases; one for a purchase price of $400,000 and one for $1,000,000. The information provided below is a general guideline used for example purposes only. Your actual closing costs may be more or less. Also, these costs do not include the cost of a home inspection which depending on the size of the home could cost $300-500. The total closing cost estimates are in bold type.

Purchase Price: $400,000
Loan Amount: $320,000
Down Payment: $80,000
Interest Rate: 5%

Estimate for Closing Costs:
Appraisal Fee: 500.00
Credit Report: 14.00
Loan Application: 395.00
Commitment Fee: 150.00
Flood Certification Fee: 8.00
Attorney Fees: 3,200
Recording/Filing Fees: 350.00
Location Survey: 550.00

Sub-Total: $5,017.00

Prepaid Escrow & Adjustments:
Hazard Insurance (12 months): 780.00
Real Estate Taxes (4 months): 3000.00
Interest: 44.44

Sub-Total: $4,446.67

Details of Purchase:
Purchase Price: $400,000
Closing Costs: $5,017.00
Pre-paids: $4,446.67
Total Costs: $9,463.67
Total: $409,463.67
Less Mortgage Amount: $320,000
Down Payment: $80,000
Total Cash Required for Closing: $89,463.67




Purchase Price: $1,000,000
Loan Amount: $800,000
Down Payment: $200,000
Interest Rate: 5.750%

Estimate for Closing Costs:
Appraisal Fee: 500.00
Credit Report: 14.00
Loan Application: 395.00
Commitment Fee: 150.00
Flood Certification Fee: 8.00
Attorney Fees: 5,000
Recording/Filing Fees: 400.00
Location Survey: 550.00

Sub-Total: $7,017.00

Prepaid Escrow & Adjustments:
Hazard Insurance (12 months): 1200.00
Real Estate Taxes (4 months): 4800.00
Interest: 1916.67

Sub-Total: $7,916.67

Details of Purchase:
Purchase Price: $1,000,000
Closing Costs: $7,017.00
Pre-paids: $7,916.67
Total Costs: $14,933.67
Total: $1,014,933.67
Less Mortgage Amount: $800,000
Down Payment: $200,000
Total Cash Required for Closing: $214,933.67

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