4 Thoughts on What are the closing costs on a home valued at 400k, ballpark?
  1. Reply
    Miss Emily
    September 3, 2011 at 5:13 am

    Ballpark: if you go through a direct lender, one who “funds loans in house” (make sure you ask your lender that question), closing costs are roughly 2% of the purchase price.

    Most mortgage “brokers” charge about 3%, I think that’s ridiculous.

    Anyone who says they charge less or “no closing costs”, they have to make $ $ somehow & it will be added into the interest rate they offer you.

  2. Reply
    September 3, 2011 at 5:57 am

    Closing costs vary by state and lender. And when purchasing, there are actually 2 categories of costs, “closing costs” and “prepaids”. Some lenders will only quote closing costs if that is all you ask for. Be sure to be specific and get a Good Faith Estate (GFE) from any prospective lender to know for sure what the total fees may be.

    Typical “Closing Costs”: application fee, appraisal, credit, title, flood cert, origination fees, discount fees, tax service fee, underwriting, administration, funding fee, etc.

    Typical “Prepaids”; odd days interest, tax and insurance deposits (for escrow account if applic), PMI premiums

    In addition, you will need to purchase your 1st year’s homeowners insurance upfront and will need to call your agent for a quote.

    I would suggest to contact a few lenders to get some real quotes.

    PS – I work for a mortgage broker and have NEVER charged 3% for closing costs. If I were quoting your deal above, the closing costs would be less than 1/2 % as they are fixed costs and have nothing to do with the loan size. I wouldn’t be able to quote pre-paids without knowing your insurance costs and the taxes on the property. Best bet is to shop around to all lending types such as banks AND brokers.

  3. Reply
    p k
    September 3, 2011 at 6:30 am

    anywhere from 2k-12k depending on if you are buying down your interest rate and if your loan officer is charging you.
    appraisal is about 300-400 dollars.
    title and escrow can cost 1100-25oo dollars. the rest will be broker fees and origination fees.

  4. Reply
    September 3, 2011 at 6:45 am

    Many of your closing costs will be determined by where you live. In Florida for example, their are hefty doc stamps that will run you a total of $ 1.25 per hundred dollars of the purchase price or financed amount. Other states have similar charges specific to them as well. You also need to determine if you will be escrowing for taxes and insurance, which is normally a 3 month reserve of each, as well as 12 months of your insurance upfront. Charges from the title company will include title insurance which will be roughly $ 1500 alone with additional cost for closing, abstract and title searches. You also can’t forget any origination charges from your loan officer which could be anywhere from $ 0.00 to thousands of dollars depending on the pricing of the loan. So in short, it is really difficult to give you a rough estimate without a little more information. In Florida you would be arounf $ 8-12,000 depending on escrows.

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