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Owner Title policy sounds high at $3,500. They have to check to make sure there are no other owners of a home that's not built yet?
The premium is figured based on the purchase price as follows; up to $100,000 = $5.75 per thousand, over $100,000 = $5.00 per thousand (ex: $100,000 = 575.00; $200,000 = $1,075.00). In Florida it varies per county and can be negotiated in the contract.
ask the seller/builder to kick in 6% and negotiate the prices down first if you can.
The title insurance policy would be issued at the time of sale, so the house would be constructed by then. Besides, the title company would be on the hook to cover the value of the land plus all improvements on the land. If someone were to challenge ownership of the land, the house automatically goes with it. So it's reasonable for them to charge based upon the sales price, not just on the value of the land.
The title policy amount is very much in line with your numbers.
Owner Title policy sounds high at $3,500. They have to check to make sure there are no other owners of a home that's not built yet?
Mechanics liens, etc. . . . plus the land transfer may be subject to dispute at some point. (Doesn't happen that often on projects like this, but this is why we have insurance :-)
Appraisal Fee - $500
Owner's Title Policy - $3500
Lender's Title Policy - $800
Escrow/Closing fee - $400
Recording Fee - $250
Transfer Tax - $4200
Mortgage Tax - $3000
lender Fee - $1200
CAH Builder Processing Fee - $600
Survey - $250
Capital Contribution - $700
HOA Transfer Fee - $100
CDD Fee - $2500
Total Non-Recurring costs = $18,0000
Prepaid Costs:
Property Tax: $7200
Hazard Insurance : $2000
Total Prepaid Cost: $9200
We are looking at a total of about $27K in closing costs and if we use the builder's preferred lender, they will contribute $7K so we will have to bring $20K to closing.
Does this look in the ballpark? Is there anything we can do to reduce the closing cost?
I'm a Florida mortgage broker and I noticed your loan would be a jumbo loan. Is this a VA loan by any chance?
The owner's title policy based on the purchase price is actually $3070.00. The
'mortgage tax' is stamps on the deed and would be paid by the seller if you were buying an existing home.
Since this is a builder, you pay for that.
Since this is vacant lot now most likely, the builder is estimating the cost of future taxes. Once you homestead, that will change. Call Hillsborough County property appraiser's office and they will explain the taxes to you.
I'm a Florida mortgage broker and I noticed your loan would be a jumbo loan. Is this a VA loan by any chance?
The owner's title policy based on the purchase price is actually $3070.00. The
'mortgage tax' is stamps on the deed and would be paid by the seller if you were buying an existing home.
Since this is a builder, you pay for that.
Since this is vacant lot now most likely, the builder is estimating the cost of future taxes. Once you homestead, that will change. Call Hillsborough County property appraiser's office and they will explain the taxes to you.
But if you apply for Homestead after March 1st of the year you buy you are out of luck. Then you may not even see the exemption actually kick in until the township you are in does it's budget for the next year so in my case I bought March 31st so I was out of luck last year. This year I qualify but it won't be a real effective amount until July when the town does it's budget, so if I have to pay from January til then and later I will get that money in escrow or a refund and hopefully a reduction in my mortgage for the tax portion.
Appraisal Fee - $500
Owner's Title Policy - $3500
Lender's Title Policy - $800
Escrow/Closing fee - $400
Recording Fee - $250
Transfer Tax - $4200
Mortgage Tax - $3000
lender Fee - $1200
CAH Builder Processing Fee - $600
Survey - $250
Capital Contribution - $700
HOA Transfer Fee - $100
CDD Fee - $2500
Total Non-Recurring costs = $18,0000
Prepaid Costs:
Property Tax: $7200
Hazard Insurance : $2000
Total Prepaid Cost: $9200
We are looking at a total of about $27K in closing costs and if we use the builder's preferred lender, they will contribute $7K so we will have to bring $20K to closing.
Does this look in the ballpark? Is there anything we can do to reduce the closing cost?
Not build a $600K house in Florida is your only answer.
Reminds me of my first home. Had to pay title insurance when I bought it new (because builders don't pay that even though in case of tract home construction the builder is the first owner), then paid it again when I refinanced and paid it a third time when I sold (because here the seller (except when it's the builder) pays for that.
Three times $$$$ for title insurance. I do understand the purpose but that felt like a total ripoff.
Mortgage free since 2007 and I will NEVER pay those crap fees again.
Location: Finally the house is done and we are in Port St. Lucie!
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Quote:
Originally Posted by thebigW
Unfortunately, in Florida, $600,000 doesn't necessarily mean either one of these.
LifeIsGood lives in Florida
But yeah, some places in Florida are expensive. Same as any other state it is dependent on the area.
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