Closing Cost Information

Closing costs will vary, depending on the financing arrangement and on selling price of the home, and these are approximations. Typically, closing costs paid by the buyer include the following:

  • Loan Origination Fee - The cost of originating the mortgage. Variable from lender to lender. 
  • Discount Points - Variable, depending on the mortgage interest rate. To lower the rate, you will pay higher Discount Points. 
  • Appraisal Fee - Variable from lender to lender and dependent on loan type. Averages $470- $600
  • Credit Report Fee - $25 - $50 per borrower
  • Pre-Paid Mortgage Interest - The interest pre-paid by the purchaser for the period between the closing date and the end of the current month.
  • Hazard Insurance Premium - Lenders require that the hazard insurance be pre-paid for one year and that two additional months' premium be held in escrow to cover the first two months of the following year. The first year's premium is approximately .3% of the selling price.
  • City / County Property Taxes - Variable depending on location of property, taxes are paid on a quarterly, semi-annual or annual basis, based on the property's tax assessed value, by the lender. Two additional months' premium will be held in escrow to cover the next tax bill. Fee collected at closing will include a reimbursement to the seller for pre-paid property taxes covering the period between the closing and the end of the tax period. 
  • Title Search/Exam/Commitment - The attorney's fee is generally $290 to $400.
  • Settlement Fee - The fee is generally between $500-$750
  • Lender's Title Insurance - A one-time premium, approximately 2-3% of the loan amount.
  • Owner's Title Insurance - Optional, a one-time premium, approximately 2-2.5% of the sales price.
  • Private Mortgage Insurance - Insurance required by lenders, paid for by purchasers, for loans with loan to value ratio greater than 80%.
  • Recording Fees & Taxes - These fees cover recording of the deed and the mortgage with the city or county and the state. They are approximately .4% of the selling price.
  • Survey - The fee for the survey, if required, will be in the range of $400 - $500. The figure will be higher if acreage is involved.

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