Closing Costs
Below are examples of expenses typically associated with real estate closings:
PURCHASER
For the purchaser, an approximate estimate of the closing expenses you will incur can be gotten by calculating about four to five percent of the purchase price. These expenses include the cots of obtaining your mortgage, your Title Insurance search and policy, your Homeowner's Insurance Policy, Mortgage Tax and escrow deposits for real estate taxes. See the following checklist as an example of closing costs for a $500,000.00 home.
| ESTIMATE FOR CLOSING COSTS-PURCHASER | |
| Purchase price | $500,000 |
| Mortgage amount | $450,000 |
| Premium for fee (owner) title insurance for benefit of purchaser | $2,518 |
| Simultaneous premium for mortgage title insurance for benefit of lender | $578 |
| New survey (if lucky, bank will accept old survey with inspection update | $120 - 550 |
| Municipal departmental searches | $400 |
| Miscellaneous riders and endorsements to policy (generally requested by lender) | $75 |
| Recording of mortgage and deed | $400 |
| Fee for filing accompanying Equalization and Assessment Report (see revised form, which must be signed by grantor and grantee) | $25 |
| Mortgage tax @ 1.75% of mortgage amount (less $25 deduction for one-or two-family dwelling) for NYC property (Lender pays additional 1/4%). In Nassau and Suffolk, the mortgage tax is reduced to 0.75% of the mortagage amount (less $25 deduction for one-or two-family dwelling) | $4,315 |
| Real estate tax escrow picked up by lender at closing | $400 |
| [If loan is above 80% of purchase price, bank will also escrow for PMI mortgage insurance.] | |
| Fuel adjustment for oil remaining in tank | $320 |
| Premium for one-year homeowner's insurance policy naming bank as loss payee (Bank may also insist on escrow for future homeowner's insurance) | $750 |
| Prepaid interest on new mortgage loan | $1,170 |
| Bank's attorney's fee | $600 - 900 |
| Mortgage application and processing fees including house appraisal and credit checks | $745 - 905 |
| Utility security deposit | $0 - 250 |
| Counsel fees | varies |
| TOTAL ESTIMATED CLOSING COSTS | varies |
CLOSING EXPENSES - SELLER
A Seller, in addition to paying off all mortgages and liens which encumber the property being sold, is responsible for the payment of New York State Real Property Transfer Tax and the Broker's Commission if the services of a broker have been retained. If the property being sold is located within the City of New York or the County of Nassau, an additional transfer tax of one percent (1%) of the purchase price will be imposed upon the Seller.
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