How much are closing costs ? (Union, Madison: flat fee, mortgage broker, credit)

[fallgirl]

Currently living out of state and would love to move back to Long Island. Gone almost nine years. Between the still crazy prices and insane taxes I am not sure that I can swing it. I hear that closing costs are between 7-10% of the purchase price is that true???? If so, that is insane !!

Thanks,
Fallgirl

[NYNewbie]

I just closed in July. What constitutes a closing cost varies, depending on your opinion. Should I count the reimbursement of property taxes as a closing cost? In my opinion, I don't because I would have had to pay them anyway.

There are some stupid fees, and I think you will be fine if you find an affordable lawyer. I got a more expensive lawyer (though reasonable by the region's standards) and he recommended that my lender hire an attorney also. I had to pay for that attorney. Many states wouldn't view the lender's attorney as a necessity. My lawyer also told that it was a common courtesy to give money to someone involved in the closing (I can't remember who).

Still, when it was all said and done, I think I paid less than 5%, but I went with a discount mortgage broker named Madison Financial (known as MadRate.com on the internet). Though they screwed up some very important things at closing, they weren't enough to sabotage the closing altogether. And because their fees are paid by the lender to whom they sell the mortgage, I paid some flat fee of around $400 - honestly. That's no BS. I've closed on two homes with them. They are straight up, though their staff isn't as well trained as you might get with other lenders.

Good luck

[TristansMommy]

Originally Posted by fallgirl

Currently living out of state and would love to move back to Long Island. Gone almost nine years. Between the still crazy prices and insane taxes I am not sure that I can swing it. I hear that closing costs are between 7-10% of the purchase price is that true???? If so, that is insane !!

Thanks,
Fallgirl

You are correct.. it is typcially about 10%. Shop around with mortgage brokers for the best rates,e tc. AND make sure that they stick pretty close to their closing cost estimates..

[alexei27]

You definitely have to shop around. Some credit Unions can do wonders if you can become a member. Do you have any family members in the military? If so...they can become members of the Navy Federal Credit Union...and then you can become a member under them. Their closing costs are extremely low. Our 160K mortgage had closing costs of under $2500. We are looking into a 280K mortgage later this year in LI...with closing costs of $5800.

I understand the Bank of NY had a promotion offering "no closing costs"...I am sure there are some fees, but it might be a lower with them.

Like anything else...there are always deals to be had.

[NY62]

Originally Posted by fallgirl

Currently living out of state and would love to move back to Long Island. Gone almost nine years. Between the still crazy prices and insane taxes I am not sure that I can swing it. I hear that closing costs are between 7-10% of the purchase price is that true???? If so, that is insane !!

Thanks,
Fallgirl

I am a broker and you are looking at 5 to 6%. not 7 to 10% . New york has mortgage tax that is why the closing costs are a little higher then other places.

[fallgirl]

A little crazy don't you think? I know when I bought my house in Florida, you don't use an attorney (title company instead) so that saves quite a bit. You don't have to tip anyone, I always thought that was crazy those people do get a salary. It just makes it a little harder knowing that I will have to allow for so much to go toward closing costs. Thanks to all who answered.

Fallgirl

[NYC2RDU]

Originally Posted by NYNewbie

I just closed in July. What constitutes a closing cost varies, depending on your opinion. Should I count the reimbursement of property taxes as a closing cost? In my opinion, I don't because I would have had to pay them anyway.

There are some stupid fees, and I think you will be fine if you find an affordable lawyer. I got a more expensive lawyer (though reasonable by the region's standards) and he recommended that my lender hire an attorney also. I had to pay for that attorney. Many states wouldn't view the lender's attorney as a necessity. My lawyer also told that it was a common courtesy to give money to someone involved in the closing (I can't remember who).

Still, when it was all said and done, I think I paid less than 5%, but I went with a discount mortgage broker named Madison Financial (known as MadRate.com on the internet). Though they screwed up some very important things at closing, they weren't enough to sabotage the closing altogether. And because their fees are paid by the lender to whom they sell the mortgage, I paid some flat fee of around $400 - honestly. That's no BS. I've closed on two homes with them. They are straight up, though their staff isn't as well trained as you might get with other lenders.

Good luck

NYNewbie, check your math as I think it's off a little. You posted this recently in a different thread and according to my advanced math skills you estimated closing costs at less then 1%. Your property taxes half-year bill would have to be more then $10k to get to 5%.

Originally Posted by NYNewbie

.... I live in a house that I purchased for around $380,000.

.... Closing costs, not counting taxes, came to about $3000 because we shopped around for a competitive lender.

My experience in home buying on Long Island would place the closing costs at between 5 - 7%. That would include all monies due at the time because that's what you'll need in order to close regardless of it's disbursement.

[sirtiger]

Originally Posted by NYC2RDU

My experience in home buying on Long Island would place the closing costs at between 5 - 7%. That would include all monies due at the time because that's what you'll need in order to close regardless of it's disbursement.

people are throwing 5%, 7%, 10%.... which isn't a good indicator of how much closing cost is. It depends how large your loan is, type of loan(s), type of dwelling (1 fam-3 fam), etc. Personally mine came to 2% since my loan amount was not a lot.

[TomMoser]

Also, don't confuse closing costs with pre-paid items and adjustments. Some of these are pre-paid interest (from the date of closing to your first mortgage payment due date), and pro-ration of taxes.

[NYC2RDU]

Originally Posted by TomMoser

Also, don't confuse closing costs with pre-paid items and adjustments. Some of these are pre-paid interest (from the date of closing to your first mortgage payment due date), and pro-ration of taxes.

Wouldn't closing costs be inclusive of every item needed to be paid for at the time the property changes hands? I can recall my Realtor at my first purchase preparing me for all the nickels and dimes that were likely to be bled from me.