Closing costs are fees paid in connection with the refinance or transfer of ownership in real property. They are paid by either the buyer or the seller on the settlement date. These fees will always vary. What you pay for one refinance or property transfer will not be the same as another. This is due to the different parties involved, different types and locations of property, the financial capacity of a buyer and many more factors.
The law requires lenders to give you a loan estimate within three days of receiving your application. This document sets out what your closing costs will be. These fees, however, are not set in stone and subject to change. Your lender should provide a closing disclosure statement at least three business days before the closing date. This is a more reliable estimate of your closing costs. Compare it to the loan estimate you’ve received and ask your lender to explain the fees and the reasons for any changes.
Buyer’s Approximate Closing Costs
Legal and Title Costs
Attorney fee $900-$1,400
Survey (Condo $150-$250) $450-$800
Recording Fees with Mortgage & Deed $300-$400
Title Searches/Title Policy Endorsements $250-$500
Title Insurance Premium Title Insurance Calculator
Mortgage Costs
Application Fee $600-$900
Appraisal $450-$650, $730 up to 1 Million, $1,800 for over 1 Million (due to needing 2 appraisals)
Miscellaneous Mortgage Costs $100-$600
PMI (Private Mortgage Insurance) Often required if mortgage is more than 80% of purchase price.
Points: Fee paid to lender to “buy-down” interest rate on mortgage. One point equals 1% of the mortgage.
Inspection Costs
Home inspection $400-$650
Radon Inspection $60-$300
Wood Destroying Insect Inspection $60-$150
Septic (if applicable) $500-$2,000
Oil Tank Inspection (if applicable) $395-$500
Other Inspections
Other Costs
Homeowner’s Insurance $500-$2,400
One year prepaid premium
Home Protection Plan (if applicable) $425-$900
Flood Insurance (if applicable) $750-$2,000
Prepaid Tax Adjustments
Mansion Tax: 1% of purchase price if the purchase price is over 1 million dollars.
These figures are general guidelines to aid buyers in calculating their closing cost. The figures are based on estimates on New Jersey fees and are subjected to errors and omissions and change without prior notice 1/2015. Source: Coldwell Banker
