Posted on: 29th Jun, 2006 09:44 pm
Hi, heard of closing cost in mortgage. If I take a 500K loan with no down payment, what can be the net closing costs?
Hi,
The net closing costs on your mortgage will depend upon the type of loan you are approved for. Generally, the closing costs add up to 2% of the loan amount along with title charges, inspection charges, notary fees, appraisal fees and others.
Your lender will give you an estimate of the net closing costs through the Good Faith Estimate. And, you may get rebates on some of the costs, but that depends on how well you can negotiate with the lender.
For further details on closing costs, refer to our section on this topic.
Thanks,
Caron.
The net closing costs on your mortgage will depend upon the type of loan you are approved for. Generally, the closing costs add up to 2% of the loan amount along with title charges, inspection charges, notary fees, appraisal fees and others.
Your lender will give you an estimate of the net closing costs through the Good Faith Estimate. And, you may get rebates on some of the costs, but that depends on how well you can negotiate with the lender.
For further details on closing costs, refer to our section on this topic.
Thanks,
Caron.
Hi Adolf,
The net closing costs actually depends on your state because the title fees, appraisal fee and often the tax stamps vary from one state to another or from one county to another. If you are dealing with a lender then you may be able to save a part of the costs. A broker usually charges more as he looks into making his own profit.
thanks.
The net closing costs actually depends on your state because the title fees, appraisal fee and often the tax stamps vary from one state to another or from one county to another. If you are dealing with a lender then you may be able to save a part of the costs. A broker usually charges more as he looks into making his own profit.
thanks.
Calvin,
That is a patently untrue statement.......in fact study after study has been done.....including one by Georgetown University that actually shows the opposite to be true. Adolf in a nutshell your closing costs both recurring and non-recurring can run as high as 5-6% of your purchase price based on the state you are buying in.......as an example in FL in a flood zone on a 250k home your insurance alone may run as high as 5k a year.......so on a 250k home you have allready spent 2%. Closing costs like title in MD are on avg about 2% of the loan plus homeowners insurance and if you close say in May you are also playing your second half taxes....It wouldn't matter if it is a lender or broker.
That is a patently untrue statement.......in fact study after study has been done.....including one by Georgetown University that actually shows the opposite to be true. Adolf in a nutshell your closing costs both recurring and non-recurring can run as high as 5-6% of your purchase price based on the state you are buying in.......as an example in FL in a flood zone on a 250k home your insurance alone may run as high as 5k a year.......so on a 250k home you have allready spent 2%. Closing costs like title in MD are on avg about 2% of the loan plus homeowners insurance and if you close say in May you are also playing your second half taxes....It wouldn't matter if it is a lender or broker.
