|
Closing Costs
|
Approximate Cost
|
Who Usually Pays
|
| Mortgage points* |
1 to 2 points, each point equaling 1 percent of the loan amount.
One point on a $100,000 loan is $1,000. (No-point loans are
available). |
Buyer |
| Credit report* |
$50 per person or married couple. |
Buyer |
| Property appraisal* |
Varies, from about $200 and up |
Varies; usually buyer. |
| Flood certification* (Lender requirement). |
Approximately $100 |
Buyer |
| Tax service* (Lender requirement). |
Approximately $100. |
Buyer |
| Mortgage document preparation and miscellaneous fees (such
as an appraisal review). |
Varies, from a few hundred dollars and up. |
Buyer |
| Assumption fee* (If buyer is assuming existing loans). |
Varies; often 1 percent of loan amount(s). |
Buyer |
| Proration of interest (Lender collects interest to cover the
period from closing to the first regular monthly payment date). |
Depends on closing date: interest to cover from 1 to 30 days. |
Buyer |
| Mortgage insurance (MI) premium (To cover the lender in case
the buyer defaults. Usually required on first mortgages for
more than 80% of the purchase price). |
Varies. Some MI programs require a fully year’s MI premium
paid at closing (from about .05 to 1% of the loan amount). Others
only require 2 months’ MI premiums to be paid at closing. |
Buyer |
| Impounds (Usually required when the loan amount is 90% or
more of the purchase price). |
2 months of hazard insurance, property taxes, and mortgage
insurance. More may be required, depending on when the property
taxes are due. |
Buyer |
| Title search or abstract* (This fee may be included in the
attorney’s fee). |
Varies |
Varies; buyer or seller. |
| Title insurance for buyer* |
Varies with purchase price. |
Varies; buyer, seller, or shared. |
| Title insurance for lender* |
Varies with loan amount. |
Usually the buyer. |
| Surveyor’s fee* |
Varies; often not done. |
Varies; buyer or seller. |
| Real estate brokerage commission* |
Varies; often 5 to 7% of the sale price. |
Seller, in a conventional sale. Some buyers’ agents’
fees may be paid by buyer. |
| Attorneys’ fees* (Not part of all home sale transactions). |
Varies; usually from a few hundred dollars to 1% of sale price. |
Buyer and seller usually pay their own attorney fees. |
| Hazard insurance |
Varies. Most lenders require first-year premium to be paid
at closing. |
Buyer |
| Property taxes, rents |
Varies |
Buyer and seller usually pay their prorated share based on
the closing date. |
| Assessments |
Varies; may be none. |
Varies; sometimes negotiable or prorated. |
| Prepayments penalty on existing mortgage(s) |
Varies; often none. |
Seller |
| Liens against the property |
Varies; may be none. |
Seller |
| Homeowner’s association dues |
Varies; may be none. |
Buyer and seller usually pay their prorated share based on
the closing date. |
| Homeowner’s association transfer fee* |
Varies (state law may limit the fee); may be none. |
Often the seller, but negotiable. |
| Homeowner’s association transfer fee* |
Varies (state law may limit the fee); may be none. |
Often the seller, but negotiable. |
| Escrow or settlement preparation fee* |
Varies; usually at least several hundred dollars. |
Varies; buyer, seller, or shared. |
| Miscellaneous document preparation, notary recording fees* |
Varies; about $100 to $250. |
Buyers and sellers each usually pay for their own respective
documents. |
| Transfer taxes* |
Varies |
Varies; sometimes shared. |
| Home inspection fees* |
Varies; about $200 to $500 or more |
Buyer |
| Home inspection repairs* |
Varies; may be none. |
Buyer, seller, or shared. |
| Termite repair work* |
Varies; may be none. |
Often seller, but negotiable. |
| Home warranty* |
Varies; from about $250 and up. Available in most states. |
Negotiable |
