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Old 12-06-2011, 09:54 AM
 
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Default Closing Costs - How much in NJ?

If I were to purchase a $500K house and put 10% down so my loan is $450K, how much would my closing costs be? I read somewhere they are 4% of loan? So that would be $18K - seems high to me.

Anyone know if this is correct?
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Old 12-06-2011, 10:02 AM
 
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anywhere from 3-4% is a good estimate. I'd say anywhere from $12K-$20K. there are lots of RE agents on here who can give you more info.
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Old 12-06-2011, 10:46 AM
 
Location: Vermont
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id think around 12k. you're going to pre-pay some interest, pre-pay some taxes, etc. Title insurance is expensive. it will also depend on what day of the month you close I think...
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Old 12-06-2011, 11:26 AM
 
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I just closed in august, mine were 2.2% of purchase price
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Old 12-06-2011, 05:30 PM
 
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Oh wow, I didn't realize this cost. Guess we have to continue saving more if we're ever going to buy something decent in this state.
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Old 12-07-2011, 12:45 PM
 
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I wouldn't go by % of purchase price, IMHO, it is not even an accurate measure. There are fees that are fixed or vary a little across the board and will sway that % figure a lot. Also your total cost depends on whether or not you are buying points. My total closing cost was ~$3,500 on a $250k loan. This included appraisal fee of $450, title insurance $1,200, attorney fees of $700, prepaid interest ~$700, recording fees ~$400 and other small doc/deliverery/credit fees. Depending on the bank, you may get charged with origination fees and other junk, so do your research for lenders prior to committing. Hope this helps.
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Old 12-07-2011, 01:21 PM
 
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I don't know if you will qualify, but if you are a 1st time home buyer, and meet financial guidelines, some counties in NJ will pay for your closing costs. There may be some strings, like you have to remain in the home for 6 years though.

Burlington & Monmouth Counties have one:
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Old 12-07-2011, 04:05 PM
 
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I think you need to learn the difference between money that goes to prepayments/refunds to sellers and actuall fees.

If you close on the 2nd day of October, the seller probably already paid the taxes for the 4th quarter. If your taxes are $16K/year, then you will ahve to pay him almost $4k. Is that a closing cost?

If you closed on the 29th of setember (and for arguement sake, the town let you pay taxes up to the last day), then you would only owe the seller a couple of hundred, but you would have to pay the town $4k for the quarter in a couple of days.

Any difference? is one a closing cost and the other not?
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Old 12-07-2011, 04:45 PM
 
Location: NJ
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Try and see if you can pay taxes and insurance on your own rather than the bank collecting escrow.
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Old 12-07-2011, 04:52 PM
 
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Quote:
Originally Posted by O-er in WO View Post
I wouldn't go by % of purchase price, IMHO, it is not even an accurate measure. There are fees that are fixed or vary a little across the board and will sway that % figure a lot. Also your total cost depends on whether or not you are buying points. My total closing cost was ~$3,500 on a $250k loan. This included appraisal fee of $450, title insurance $1,200, attorney fees of $700, prepaid interest ~$700, recording fees ~$400 and other small doc/deliverery/credit fees. Depending on the bank, you may get charged with origination fees and other junk, so do your research for lenders prior to committing. Hope this helps.
This.

I had no points by the way.

Strictly for Budgeting purposes, you should budget ~3.5%. If you end up spending less, thats great, you'll have some money for a couch.
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