What equation do you use to determine closing costs on your loan?

Status: Open
May 22, 2017 Views1,568 Answer a Question

About 6 years ago
There is no basic equations. there are numerous variables to determine the closing cost. Consulting a lender is the best way to determine. Also some of the banks have online mortgage calculators to assist with the estimation and you can play with numbers. According to a local lender,
source:
https://www.bankofamerica.com/mortgage/closing-costs-calculator/\nBenson Sargent\nSenior Loan Officer\nNMLS #365920\nCell: 832-457-0158\nFax: 866-422-...
About 6 years ago
Dear Christian,

First it is important to understand what you define as closing costs.

When you come to closing you bring a Check (or wire money).
That goes into 2 categories: Loan costs and Closing Costs.
1) Loan Costs include, Down Payment, Loan Origination fees, Appraisal fees and many smaller fees.
2) Closing Costs include Title Fees, Survey Fees, Lender Title Insurance fees, Owner Title Insurance fees, Property insurance, Taxes, HOA Fees, transfer fees and Title fees

As an example for a 3.5% FHA Loan for a home for $250,000 you are looking at about $15000 to Bring to Closing.

Have a Great Day,

Dominik Szabo
Brockway Realty L.L.C.
(832) 844 1724
DominikRealtor.com
** The Doctor of Real Estate in Houston Texas **
" Professional, Courteous, and Informed "
About 6 years ago
Buyers closing cost for the purchase of the home will typically be between 2-5% and, may be negotiated for seller to cover some of that. The closing costs for the loan would be very dependent to the loan package you are obtaining. If interested, one of the first steps besides finding a trustworthy REALTOR® would be to find a great mortgage company, which your REALTOR® should be able to help with. I have several I would recommend and would be able to give you several options and advise their recommendations based on what you would qualify for. At that point they would also be able to give you a better idea of what you will need out of pocket at closing.
About 6 years ago
Christian,
There are two types of closings costs: lender costs and title company costs. The title company costs are regulated. The lender costs vary based on what you negociated.
Your lender should create a good faith estimate(GFE) that include both types of costs. They are required to create that GFE. The cheaper the property the higher the % of closing costs. That estimate cannot be more than 10% off the reality or they will have to credit you a portion of these costs at closing (some federal regulation dictate this).
I hope this helps,
Thanks
About 6 years ago
Hi Christian,

Determining closing costs is really Buyer (based on the loan product, price of the home, amount down / amount financed, interest rate, escrow reserves, etc) and Property (mainly taxes, insurance) specific. Also, lender fees and title fees vary - lender origination cost, appraisal fee, survey, cost associated with buying down a rate, etc. Keep in mind that your cash to close will include your amount for your down payment as well as you closings costs (daily interest, prorated taxes (+/-), lender origination fee, title fees, escrow reserve (if applicable), hazard insurance paid up front) minus the credit for your earnest money deposit and option fee.

Feel free to reach out if you have a question about a particular property, I'd be happy to advise. A good mortgage lender is quick to run numbers on a property that you are interested in (before making an offer).

Darby Grimmett / Keller Williams / darby@darbygrimmett.com / 936-827-9217

About 6 years ago
Hi Christian,

A good rule of thumb is to assume 4% of the price. Texas averages between 2% and 5%. Now this will vary on the contract and the ability of your agent to negotiate a great deal with you to the seller; if you use an agent. If you do not already have an agent, I would love to be able to help you. You can call, text or email anytime to answer questions.

Michael Jobin
C&K Properties
713.545.2314
MJobin@Jobee.com
source:
http://candkpropertieshouston.com/agents/michael-jobin/
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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