There are standard non-recurring and recurring costs associated with the closing of every home loan -- the only variable is who pays the non-recurring costs.
In a "No Cost" loan the lender pays the
non-recurring closing costs, usually in exchange for more points or a
higher interest rate. Conversely, if you pay the non-recurring closing
costs (which can be financed as part of the total loan amount), you get a
lower interest rate and fewer points. Determining which closing cost
option is best for you depends on your credit score, how long you intend to keep the property and what you think your future financial situation will be.
| Non-Recurring Closing Costs* | Recurring Closing Costs |
|
Origination/Points
Title Insurance
Processing
Underwriting
Documentation
Tax Service
Notary
Flood Certification
Recording
Wire Transfer
Credit Report
Appraisal |
1% of loan
$300 - $1,000
$595
$495
$100
$70
$100
$25
$100
$50
$18
$350
|
Pre-paid / Accrued Interest
Insurance Premiums
Property / Transfer
Taxes |
*These amounts are estimates only and vary among lenders.
This information is provided solely as a guide to anticipate costs.
More accurate representations of your specific closing costs can be found on the Mortgage Loan Disclosure and Statement of Estimated Closing Costs,
while the Statement of Closing Costs (also known as a HUD-1) will have the exact amounts.
