Typical Costs 1-Page Recap

BORROWER'S CLOSING COSTS

The following is a list of typical closing costs associated with the purchase of your home.  In Seattle, closing costs approximate 2.25% of the purchase price if you are getting a mortgage.  Please remember these are estimates only.

Loan Application Fee

Paid to Lender to cover appraisal and credit report.

Points or Loan Origination Fee or Loan Discount Fee

Paid to lender at closing, calculated as a percentage of loan amount (i.e. - 1 point equals 1% of loan amount).

Private Mortgage Insurance (PMI)

Paid to mortgage insurance company: required when the loan to value is greater than 80% (approximately .45% of loan amount annually)  This varies greatly depending on the type of loan that you are getting.  The more you put down, the lesser the cost of your PMI insurance. 

Prepaid Interest

Interest on the note paid to lender from the date of the closing through the end of the closing month. This cost is determined by the day of the month that you close and your principal & interest cost.                                                                              

Underwriting Fee

Charged by the lender to underwrite borrower's file.

Processing Fee

Paid to mortgage broker to process loan and reimburse miscellaneous out-of-pocket expenses including messenger fees and overnight delivery costs.                    

Document Preparation Fee

Charged by lender to prepare loan documents.                

Tax Service Fee

Charged by the lender to obtain real estate tax bills and monitor payments of real estate taxes.

Lender's Title Insurance Policy                                                 

Required by lender and paid to the title company to insure lender's interest inn property is first mortgage: certain endorsements to policy may also be required by lender.  This cost will vary as it depends on the value of the property and the mortgage.

Escrow Closing Fee

Paid to title & escrow company to act as lender's agent in handling closing

Transfer Taxes                                                                   

For purchases only, transfer taxes vary by county.

Escrows 

Typically required by lender to insure payment of real estate taxes, insurance and private mortgage insurance.  Amounts vary by month of closing.

Recording Charges 

Charged by recorder's office to record mortgage and deed (purchase) or release (refinance).

Homeowner Association Fees

Depending on the condominium building, some management and condominium boards have  fees that are required to be paid by the buyer before they will provide  information.