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Message
Closing on a mortgage cost
Posted on 6/22/21 at 12:07 pm
Posted on 6/22/21 at 12:07 pm
About how much should a closing on a Mortgage be?
I am looking at buying a house for around $150k and they are showing my closing cost at $13,200. Only 900$ of that is going to my escrow. So for all the fees and other stuff, it is technically around $12,500 in charges.
Just trying to see if this is around the right price because it seems kind of high to me.
I am looking at buying a house for around $150k and they are showing my closing cost at $13,200. Only 900$ of that is going to my escrow. So for all the fees and other stuff, it is technically around $12,500 in charges.
Just trying to see if this is around the right price because it seems kind of high to me.
17
Posted on 6/22/21 at 12:12 pm to Curado Roy
That is damn high. I paid $7000 for a $200k house.
Posted on 6/22/21 at 12:17 pm to Curado Roy
Without seeing the line items its impossible to say. I dont know if you bought down a ton of points, pre-paying a year of insurance and taxes, paying a huge commission for your agent plus the seller's, etc...
I would guess it's the commission at closing that's really high if you're paying your agent and the seller's at closing. 6% of $150k is $9k
On the hoof, $13k for a $150k mortgage seems ridiculously high.
I would guess it's the commission at closing that's really high if you're paying your agent and the seller's at closing. 6% of $150k is $9k
On the hoof, $13k for a $150k mortgage seems ridiculously high.
This post was edited on 6/22/21 at 12:22 pm
Posted on 6/22/21 at 12:22 pm to Curado Roy
Is this based off the Loan Estimate or Closing Disclosure?
This post was edited on 6/22/21 at 12:23 pm
Posted on 6/22/21 at 12:45 pm to Curado Roy
way too much, look for a local bank or credit union. Rocket mortgage or someone of that ilk generally charge higher closing costs than local. I paid like 3k on a 348k house. Not sure where you are but we used Abbeville Bank and Trust
This post was edited on 6/22/21 at 12:46 pm
Posted on 6/22/21 at 12:49 pm to Curado Roy
That is way too high. My title costs were like $4k and mortgage lender fees were around $1k. This was in New Orleans.
This post was edited on 6/22/21 at 12:49 pm
Posted on 6/22/21 at 12:54 pm to Curado Roy
There is a difference between closing costs and settlement charges.
Loan origination, processing, underwriting are typically the mortgage company's cost to get you the loan.
Discount points are your cost to get your interest rate.
Appraisal, credit report, title/title insurance/record/doc prep, state taxes are typically the other closing costs associated.
The rest are called prepaids.
This is not technically a cost of the loan because these are things that you have to pay anyway.
Home insurance in full.
Property taxes.
Setting up a new escrow account.
Mortgage interest.
Sometimes, MIP (fha or VA loans) will have lump sum mortgage insurance payments.
Does any of this match what you are looking at?
Loan origination, processing, underwriting are typically the mortgage company's cost to get you the loan.
Discount points are your cost to get your interest rate.
Appraisal, credit report, title/title insurance/record/doc prep, state taxes are typically the other closing costs associated.
The rest are called prepaids.
This is not technically a cost of the loan because these are things that you have to pay anyway.
Home insurance in full.
Property taxes.
Setting up a new escrow account.
Mortgage interest.
Sometimes, MIP (fha or VA loans) will have lump sum mortgage insurance payments.
Does any of this match what you are looking at?
Posted on 6/22/21 at 12:56 pm to Curado Roy
quote:
I am looking at buying a house for around $150k and they are showing my closing cost at $13,200. Only 900$ of that is going to my escrow. So for all the fees and other stuff, it is technically around $12,500 in charges.
Yikes. What are the fees?
Are you including your money down, realtor fees, etc.? No way it should be anywhere close to 10% for the closing cost.
Posted on 6/22/21 at 1:03 pm to Pintail
quote:
Are you including your money down
This has to be it, right?
Are buyers really paying the commissions now? I know the market is crazy, but is that really happening?
Posted on 6/22/21 at 2:10 pm to moneyg
quote:
Are buyers really paying the commissions now? I know the market is crazy, but is that really happening?
Absolutely buyers are being forced to pay commissions left and right at the moment, people are offering way over asking just to get noticed
As a seller I wouldnt pay a dime at closing right now and tell the buyer to pay all of it. Market is just nuts right now.
Friend just put her Atlanta condo up for like $250k and she got a $275k cash offer the first weekend with all closing costs paid by buyer with many other offers on the table and it needs some things done to it (new water heater and a/c are both really old)
This post was edited on 6/22/21 at 2:20 pm
Posted on 6/22/21 at 2:18 pm to Curado Roy
That's high by normal standards
If the realtors' commissions are in there that would explain it. Otherwise look for a credit union or other option
If the realtors' commissions are in there that would explain it. Otherwise look for a credit union or other option
Posted on 6/22/21 at 2:24 pm to Curado Roy
That's insanely high. I have a close friend that can help you with this and get those costs down if you would like.
Posted on 6/22/21 at 2:27 pm to Curado Roy
You cant pay more than 3% in closing costs
You must have an insane escrow account
You must have an insane escrow account
Posted on 6/22/21 at 2:27 pm to Curado Roy
Sounds pretty high. If you can provide an itemized breakdown of the costs, we could better advise you on where you are getting ripped off.
Posted on 6/22/21 at 2:57 pm to thunderbird1100
quote:
Without seeing the line items its impossible to say. I dont know if you bought down a ton of points, pre-paying a year of insurance and taxes, paying a huge commission for your agent plus the seller's, etc...
I would guess it's the commission at closing that's really high if you're paying your agent and the seller's at closing. 6% of $150k is $9k
On the hoof, $13k for a $150k mortgage seems ridiculously high.
He is not paying commission unless it was added to the contract. Most likely he is including his down payment along with all taxes and insurances in the 13k
Posted on 6/22/21 at 3:31 pm to J_Hingle
You should compare your loan terms to the best offers in Zillow rates
Posted on 6/22/21 at 3:50 pm to J_Hingle
Origination Charges: $3,198
Appraisal: $620
Inspection Fee + Flood certificate: $135
Mortgage insurance premium: $2,533
Titling Fees (Attorney Fees, closing fee, courier fee, lender title insurance, title endorsement fee): $1,800
Taxes and Government Fees: $690
Prepaids: $3,072
Initial escrow: $949
Other (title owner insurance): $265
No lender credits. Total closing cost = $13,262
My Down payment is $3,154 on top of the total closing cost.
Appraisal: $620
Inspection Fee + Flood certificate: $135
Mortgage insurance premium: $2,533
Titling Fees (Attorney Fees, closing fee, courier fee, lender title insurance, title endorsement fee): $1,800
Taxes and Government Fees: $690
Prepaids: $3,072
Initial escrow: $949
Other (title owner insurance): $265
No lender credits. Total closing cost = $13,262
My Down payment is $3,154 on top of the total closing cost.
Posted on 6/22/21 at 3:51 pm to Curado Roy
Too high
Posted on 6/22/21 at 4:06 pm to Curado Roy
I’m buying now and have 9k on a 275k house.
Posted on 6/22/21 at 7:30 pm to Curado Roy
What state are you in and when are property taxes due? Assuming they're paid at the end of the year, you shouldn't be paying any property taxes at the closing, and should actually be getting a credit from the seller for their pro rata share of taxes through closing.
Origination fee seems high, but I really don't know the norm on residential loans. Mortgage insurance seems very high, but again, don't know the norm. You should get a better breakdown of titling fees. What are prepaids? P&I prepayments? If so, for how many months?
Origination fee seems high, but I really don't know the norm on residential loans. Mortgage insurance seems very high, but again, don't know the norm. You should get a better breakdown of titling fees. What are prepaids? P&I prepayments? If so, for how many months?
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