Closing Cost Estimates
(B=buyer cost S=Seller cost)
Loan Origination Fee: (B) A fee that covers the lender’s administrative costs in connection with the loan. Typically 1% of the loan amount. Can sometimes be financed into the loan or waived at a higher rate.
Discount Points: (B)/(S) A one-time charge used to adjust the lender’s yield on the loan to match what market conditions demand. One point=1% of the loan amount. Average = 0-3% of the loan amount.
Appraisal Fee: (B) A statement of property value made by an independent appraiser. Conventional appraisals average $350, FHA/VA appraisals average $300.
Appraisal Review: (B) Lender’s cost to review the appraisal and inspect the property if necessary. Average $25.
Credit Report: (B) A report obtained from one or more reporting agencies to check the borrower’s credit history. Average $50.
Express Charge: (S) Charges to defray the cost of expressing the loan package overnight to the lender. Average $30.
Underwriting Fee: (B) A fee charged by some investors to underwrite and approve the loan application. Average $100-$300.
Tax Service Fee: (B) A one time fee charged to the lender by an independent tax reporting agency to search tax records and route the property tax billings to the lender for payment. Average $75.
Mortgage Insurance: (B) This protects the lender from loss due to default, and allows the borrower to obtain loans with less than 20% down. Cost varies depending on the loan-to-value ratio, type of loan, etc.
Hazard Insurance: (B) This protects you, the owner, against loss due to fire, theft and natural hazards. Typically the first 14 months are paid at closing.
Title Insurance: (B)/(S) Protects you, the buyer and seller, against loss due to claims against the property, which cannot be found on public record. Average $2 per $1000 of coverage.
Revenue/Deed Stamps: (S) Fee charged by
Interim Interest: (B)/(S) Interest on the new loan that is collected at closing to pay through the end of that month. Your first payment will not be due until the first full month following closing!
Escrow Deposits: (B) Funds held in an account by the lender to assure future payment of the hazard insurance, property taxes and mortgage insurance. Average is 2 mo’s hazard insurance, 2 mo’s mortgage insurance and 4 mo’s taxes.
Attorney Fees: (B) Fees for legal services of the closing attorney for title examination, obtaining title insurance, and conducting the closing. Average $475.
Recording Fees: (B)/(S) Fees paid to the Clerk of the Court to record the deed, deed of trust and any other necessary documents. Average $20.
Survey: (B) Property survey by an independent surveyor that shows the property lot lines, easements, encroachments, and any improvements. Average $350 - $400.
Termite Inspection: (B) Self-explanatory. Average $85.
Mechanical/ Structural Inspection: (B) Fee paid to an independent, licensed inspector to visually inspect the mechanical and structural components of the property. Average $300-$500.
Radon Test: (B) Fee for testing to determine the presence/absence and levels of radon. Average $125.
Well & Septic: (B) Tests to determine the adequacy and condition of the well and septic systems. Average $150.
