Helpful Hints About Your Closing Costs

Points: Each point is equal to 1% of the mortgage you are financing. A point is actually prepaid interest. Typically for each point you pay, you may obtain a reduced interest rate.

Bank Fees: These fees vary from bank to bank, and will be +/- $1,850.00 which includes the following:

a. Application fee
b. Credit report; to determine credit rating.
c. Appraisal; to determine property value.
d. Bank attorney; legal representation for the financial institution.
e. Tax service; private company to handle escrow of taxes and insurance.
f. Flood certification; to determine whether flood insurance is needed.
g. Documentation preparation fee; also known as underwriting fee, processing commitment, and/or administration fee. This is for the handling of your file.
h. Airborne or Federal Express fees

PMI: Private Mortgage Insurance is required with a down payment of less than 20%. Please inquire of the several different ways to pay for this insurance.

Escrow Account: Real estate taxes for 6 to 8 months will be required at closing. Two months of Homeowners Insurance and PMI premiums will be required at closing.

Interim Interest: Also known as “odd days interest.” Depending on your closing date, interest for the remaining days of the month, will be paid to the bank.

NY Mortgage Tax: A tax of .80% of your mortgage amount in Nassau & Suffolk County. In Queens and Kings County it is 1.80%.

Recording Fee: A fee required at closing to record all documents in the county clerks office.

Title Insurance: To ensure that the property is free and clear of any liens at the time of closing. This fee covers the completion of the title search and the survey inspection.

Survey: If the survey inspection is not acceptable because of its age or any significant physical damages to the property, a new survey would be required.

Personal Attorney: You will obtain legal representation. Make sure you are confident in the attorney’s professionalism and experience with real estate matters.