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What are closing costs?

  • September 04 2013 - US
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Answers (3)

Profile picture for mgross16
I was going to buy a home for $205K in New York. The GFE at closing was close to $20K!  There's a big surprise of money up front.  Make sure you really know what you have to bring to at closing well in advance.
  • September 04 2013
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I think closing costs are misleading. They sound like a bad thing, but they aren't. You will pay a loan origination fee, usually 1% of the loan, to the lender. You will also pay your attorney, title search, deed recording and some other miscellaneous fees. Most of the money though will go to your insurance and taxes. You also will pay into your escrow account, which is what future taxes and insurance will be paid from. And, you'll start paying for your loan. Most likely, after all is said and done, you'll pay almost $5000, however, your first mortgage payment won't be due until the second or third month. You pay heavy at closing, but then get a break for a month or two.

  • September 04 2013
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Closing Costs are costs associated with buying a home. A loan officer will be able to give you the best description but closing costs often include, taxes, insurance, attorney fee's, application fee's from the bank and many other items. You can expect your closing cost to be around 3.5-4% of the total sale price.
  • September 04 2013
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