5 responses to “if I get a 100% loan on at 185k house, what will my closing cost be on avg?”

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  Paul C May 11th, 2010 at 17:45

  Joel

  Impossible question to answer. There are too many variables. Credit, Income, Assets, Loan Term, State, Taxes and Insurance.

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  trblmkr30 May 12th, 2010 at 08:26

  Allison

  Ask for up to “3% of the purchase price to be applied towards closing costs and/or prepaid expenses.” This should cover you.

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  KELSEY May 12th, 2010 at 19:00

  Shannon

  It depends on the lender, but more than likely all you’ll have to pay out of pocket to the lender is the cost of the appraisal fee. The inspection fee is paid out of pocket to the inspector (if you decide to get one, which I do recommend) and lastely any earnest money you deposit. On average people put about $500-$1,000 for earnest money, an appraisal runs about $425 and an inspection around $400+.

  Certainly ask for the seller to contribute up to 3% of the sales price as seller paid costs. At a price of $185,000.00 that’d be $5,550.00 the seller would pay towards your closing costs, prepaids and reserves. All lenders have different fee schedules, but on average, for all closing costs and prepaids/reserves you’re looking at costs of about 2 – 2.5% of the loan amount. Now, what you do with the remaining 1 – .5% is use that money to buy down your rate!! Talk to your lender about this, they’ll know what I’m talking about.

  Also, if you’re closing costs are more than $3,500 shop around with different lenders to make sure you’re not being charged too much. Prepaids and reserves can be anywhere from a few hundred to couple thousand dollars. That figure is dependent on the cost of property taxes, homeowners insurance, your closing date and first payment date.

  Good luck

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  Kirk S May 12th, 2010 at 20:06

  Alvin

  I have owned 4 homes and have never paid closing cost. Either the seller paid or the lender did. NEGOTIATE NEGOTIATE NEGOTIATE!!!!!

  Good luck!!!!

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  Rush is a band May 15th, 2010 at 20:28

  Arlene

  It really depends upon where you are and when you close. There are some closing costs that won’t change. You will be paying a mortgage origination fee, an appraisal fee, title insurance, credit check fee, fax fee, day-of-the week fee (made that one up, but they do too, so keep on ‘em), buyer’s attorney fee, etc.

  The real variable ones are the ‘pre-paids’. If you close early in a month you will generally pay that month’s interest (pro-rated for the number of days). If you close on the 8th of the month you will need to pay ~23 days of interest to get you to the end of the month. If you close on the 29th, then it will only a couple of days of interest. This can be a large difference.

  Since you aren’t putting anything down the mortgage company will want escrow. It’s an account they set up in your name to pay taxes and insurance. Depending upon the lender’s policy, etc., you may have to put almost an entire year’s worth of taxes in that account at closing. This is the wild card. In upstate NY this could cost you $6000 to $7000! In the deep south this would cost you ~$800. See the difference? That’s why we need to know where you are!

  rule of thumb is between 3-5% of the purchase price!!

  good luck!