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how are closing costs calculated?

  • June 06 2012 - Flint
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Answers (5)

Best Answer

Closing costs are calculated by the fees of various vendors used in your real estate purchase. They may vary depending on who you use. Below is a list of most of the fees that will go into calculating your closing costs.

escrow fees
title insurance
lender fees (origination points, appraiasal, etc)
property taxes
tranfer taxes
recording fees

The best way to find out what your estimated closing costs will be are to request a good faith estimate from your lender then double check the numbers with the fees you will be paying on the other items that escrow has listed on your estimated hud.

Good luck and feel free to call, text or email me with anymore questions.
  • June 07 2012
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@
  • NoelleNavinsFiedler in response to your question, yes your closing costs will be more than $5,000 based on a purchase price of $210,000.  Your closing costs will include your down payment, pre paid items (taxes & insurance), lender fees, title fees, escrow fees, survey, appraisal, etc.  Contact a mortgage lender in your area for more specific information.
  • December 07 2014
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im selling my house myself for 210.000 will the costs be more than 5000??
  • December 04 2014
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Someone at the title company, probably a well groomed executive, but possibly an assertive mid-level manager with an ill-fitting tie, will decide that they, the title company, needs to clear $3500 on your closing. They have arrived at this number because that is how much was lost during the poker outing the previous night.

Then, a frazzled secretary will be asked to choose a series of odd numbers, most likely her fellow secretaries weekly lottery choices, and then apply those to legitimate sounding fees such as 'expediting fee', 'recording fee', 'federal recording fee', 'certification of title', 'secondary insurance to title insurance for lender's title insurance, etc.

Many of these numbers will appear rather small, such as $37 or $23 among a few larger ones like $1,081.

Now, it may seem complicated to check such a mathematical fiasco, but simply add up all those fees, and yell out over the closing cubicles separating all the other people getting scammed, "Hey, who lost $3500 last night?", and off in the distance, you should hear the sound of cheap coffee being spit against a glass window.

That's how closing costs are calculated.
  • June 12 2012
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Some fees are calculated on the mortgage amount and some are figured on the home you're purchasing. All fees must be disclosed on a Good Faith Estimate.  If you're doing a FHA mortgage there are fees relating to that also (MIP upfront and monthly).

Good Luck!!
  • June 07 2012
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