Buying a House in Maryland - Estimating Closing Costs (Silver Spring: sales, mortgage)

[E&MFlorida]

If someone was to purchase a house in Maryland for, say, $212,500 and was to have a mortgage of $170,000, what would the estimated closing costs be? Are they based on the value of the house or the mortgage balance? Any guidance would be greatly appreciated by one and all.

[starr71]

I would estimate 3% of the sales price for closing costs. If you can, see if you can get a no fee mortgage from Bank of America. It cuts out most of the fees at closing, and you pretty much just pay taxes.

[Doorway]

Originally Posted by E&MFlorida

If someone was to purchase a house in Maryland for, say, $212,500 and was to have a mortgage of $170,000, what would the estimated closing costs be? Are they based on the value of the house or the mortgage balance? Any guidance would be greatly appreciated by one and all.

Starr's estimate is correct if you negotiate with the buyer to pay half. Closing costs are typically 6% of the sales price. As some of those costs (though, not many) are based on the loan, they may be lower. In Md. it is pretty standard that the seller and buyer "split" closing costs but it won't happen if you do not write it into the contract. Buyer Beware!!! Again, Starr is right in that BOA seems to have the best no cost loan. Many advertise such a loan, but have many hidden junk fees. Be sure to get a "good faith estimate" before signing anything. You sould know that ALL fees are negotiable, This includes attorney's fees, lender fees and Realtor fees.
A good chunk of your up front closing costs is pre-paid taxes. Check w/ your lender. Depending on when you settle, he will have to get 6-12 mos. property tax up-front. This is up to the state and/or county. He has no control over this. Again, ask to see a "good faith estimate".
You will pay the interest on your mortgage for the remainder of the month in which you settle and the entire folowing month. So... settling on the 29th of Nov. will allow you to put up alot less money than if you settled on the 3rd of Nov. Either way, your first Morgage paym will be due on Jan. 1st. Assuming you will pay 2 days instead of 27 days.. At $6.99/$1,000 on a morgage of $170,000 you are paying $39.61/day for principal and interest. (I don't know what your taxes and ins. are so lets go on this assumption) You will pay $78.50 in pre-paid P&I if you settle on the 29th of the month and $1069.50 in pre-paid P&I if you settle on the 3rd of the month. That is $991.00 less you will have to come up with if you settle on the 29th vs. the 3rd. You will pay it eventually, but don't need to have it up front if you don't want to......This should give you something to go by... Good luck......Where are you buying???
I lived in Md. for 22 years (Rockville,Silver Spring and Gaithersburg) and moved to Charlotte, NC about 7 weeks ago............

[lscalder]

Closing cost range from 3%-6% range but the title company fees alone will be around 4k.
The bank will charge you around $1,200 other third party fees. Closing cost is usually closer to 6%.
People donot get foul by No closing cost fee. What bank of AMerica do is increase your interest rate to pay for your closing cost. So either way you are paying for your closing cost. Instead of paying upfront at settlement, you will pay for it every month.
When getting a price quote from BOA ask for the rates for both No closing cost and the standard 30yr or 40yr fix and you will notice the difference in rates.
Please think about it people banks are in business to make money not loose money so it BPF pays for everyone's closng cost how will they pay their mortgage employees who get pay base upon how many loans they close or commission.

[starr71]

Originally Posted by lscalder

Closing cost range from 3%-6% range but the title company fees alone will be around 4k.
The bank will charge you around $1,200 other third party fees. Closing cost is usually closer to 6%.
People donot get foul by No closing cost fee. What bank of AMerica do is increase your interest rate to pay for your closing cost. So either way you are paying for your closing cost. Instead of paying upfront at settlement, you will pay for it every month.
When getting a price quote from BOA ask for the rates for both No closing cost and the standard 30yr or 40yr fix and you will notice the difference in rates.
Please think about it people banks are in business to make money not loose money so it BPF pays for everyone's closng cost how will they pay their mortgage employees who get pay base upon how many loans they close or commission.

Actually, I got quotes from three different financial institutions, including BOA, and the rates quoted were the same. The only difference, in fact, were the fees.

[Doorway]

Originally Posted by lscalder

Closing cost range from 3%-6% range but the title company fees alone will be around 4k.
The bank will charge you around $1,200 other third party fees. Closing cost is usually closer to 6%.
People donot get foul by No closing cost fee. What bank of AMerica do is increase your interest rate to pay for your closing cost. So either way you are paying for your closing cost. Instead of paying upfront at settlement, you will pay for it every month.
When getting a price quote from BOA ask for the rates for both No closing cost and the standard 30yr or 40yr fix and you will notice the difference in rates.
Please think about it people banks are in business to make money not loose money so it BPF pays for everyone's closng cost how will they pay their mortgage employees who get pay base upon how many loans they close or commission.

When you say BPF did you mean BOA? They don't pay everyone's closing fees. They just do not charge "Junk Fees" or "Admin Fees" You pay points, if you wish and an appraisal fee. They make money by selling the loan directly to you and not paying brokers to sell it for them. They also make money on the interest you pay them each month as they usually hang on to mortgages untilll they can bundle them in the billions and sell them to investors.
Points, by the way, should always be an option for you to choose if you wish to buy down the rate. It should never be forced upon you and called a "Loan Origination Fee" That is just legal highway robbery and a lot of people don't realize that.

[ChosenGSR]

So BOA seems to be the best place to secure a mortgage these days? What rate could I expect from them on a 30 year fixed with a credit score in upper 700s?

[starr71]

Chosen, my FICO is in the 600's, and I just locked in a rate of 6.625% on a 30 year fixed. You could probably do a lot better.

[Doorway]

Originally Posted by ChosenGSR

So BOA seems to be the best place to secure a mortgage these days? What rate could I expect from them on a 30 year fixed with a credit score in upper 700s?

Both of our scores were in the 790's and we locked into 6 1/4 with no points around Oct 7th ish.(30 yr. fixed) Our only lender closing costs were around $400 for an appraisal. We could have taken a 15 year at 6% for no points. SunTrust had a good no cost loan as well. We actually got the lender that was recommmended by our agent to match BOA"s price and went with him. EVERYTHING is negotiable. Let me know if I can get you names. All three of these guys were great. We shopped a lot.

[ChosenGSR]

Originally Posted by Doorway

Both of our scores were in the 790's and we locked into 6 1/4 with no points around Oct 7th ish.(30 yr. fixed) Our only lender closing costs were around $400 for an appraisal. We could have taken a 15 year at 6% for no points. SunTrust had a good no cost loan as well. We actually got the lender that was recommmended by our agent to match BOA"s price and went with him. EVERYTHING is negotiable. Let me know if I can get you names. All three of these guys were great. We shopped a lot.

by "only lender fees" you mean your out of pocking closing costs were only $400? Sounds pretty good along with a %6.25/30yr.