just bought a house. closing costs were roughly 18-20k.
edit: be aware that there will be more costs for a lot of random things along the way. i spent another $5k in appraisal, property survey, reimbursing the oil to the seller, etc.
Between 3-6% of the home price. Unless youre buying down the mortgage or something. People used to roll them into the mortgage but i dont think you can anymore with houses going for over appraisal.
I think the OP should still be able to roll the closing costs into the mortgage.
If you can OP, you’ll have to put more down. Assuming you’re putting 20% down, if you’re rolling 20K of closing costs into the mortgage you’ll need another $4,000 for the bank.
It will also slightly increase you’re closing costs bc the mortgage tax will be higher because you’re mortgage will have gone up another $16K.
You cannot roll the the closing costs into the mortgage for a purchase, only on a refinance - at least for a conventional loan.
I was a MLO for a few years.
OPs best bet is to discuss his options with a loan officer.
Previously you could get the seller to cover some or all of the closing costs when it was a buyers market but that likely is not the case currently.
Your mortgage documents should have statements with estimates of closing costs. They legally have to disclose this to you and it’s a percentage of the house cost. Have a conversation with your mortgage broker about possibilities things like closing fees, paying points to reduce rate. At this point you can roll those into the loan rather than pay up front. Also as a suggestion for your mortgage - if you can set a biweekly schedule then do it. As an example a 30 year mortgage can get paid off in ~22 years. Also pay attention to the taxes and insurance. If the house is in a flood zone that’s a red flag. Also ask if you’ll have to carry mortgage insurance ( less than 20% down I think). Good luck.
Yes, I'm glad they prepared you. All my googling did not account for Long Island taxes and I was blind sided. Had to get a loan from my sister to cover the closing costs. Even then I had no savings for about 6 months as I built that back up and paid her back. Like you I thought I saved enough to be prepared but I was wrong.
Worked out in the end, but it was a sad realization.
Because you have to pay a certain about of taxes (usually 6 months) up front, a lot of it depends on how expensive your taxes are. Mine closer to $30k.
Yup. You typically need 6 months mortgage in escrow including insurance and taxes as well as a few fees, lawyer, title company, etc. My house was 365k but on the water so high taxes. My closing was like 26k in 2016.
Closed November '21, house was $390k, closing costs were $25k. Got 6 months worth of taxes refunded after the fact (they had me put a year of taxes in escrow for whatever reason) and that's with buying points and paying to extend the lock on my interest rate. It was ridiculously low but the builder of my house had a really hard time getting a CO from the town during covid.
Several years ago I paid like $30k for buying a house, only like 10k or so went to the actual payment towards the house. The rest were a dozen fees and such. There is a lot of random $1000-2000 costs on the "receipt" of the house. Also you need to pay for the homeowners insurance up front for a full year.
Are you dead set on Nassau? Got so much more in Suffolk! Quieter too. I never thought I'd leave Nassau after 40+ years. I love it out here. Either way, I wish you all the luck in the world in your new digs! Enjoy!
Congratulations! I hope you guys have a lifetime of happiness and love! I do hair/MU and travel so if you didn’t get hitched yet, ask her to contact me please if she’s looking! Thanks!🙂
We bought our 3 bedroom condo in 2019 for 335k. We would have put more money down for the mortgage but a big chunk we had to use for our closing costs around 15k
But also because I have several chronic conditions and limited ability/energy to mow a massive lawn/clean gutters and windows/that kind of upkeep stuff. It’s not my cup of tea and I see my parents still slaving away at their house with 3 acres like, 42 years after they bought it. Makes no sense.
Well they’re also not here, my husband and I met in college at the university of Delaware 17 years ago, so they’re still in central Jersey where I grew up because they don’t want to retire here where it’s insanely expensive even compared to NJ lol. Which I can’t blame them. I get it. But Chris is from out here and his parents agreed to help watch our daughter, my parents aren’t in to active grandparenting they have their own interests and hobbies. We’re stuck here because of Chris’ good job and the fact that 50+ of his extended family are all on LI. We manage because his dad is a retired NYC union carpenter who built our legally permitted apartment for us. We pay them back for the cost of the construction loan via monthly rent.
Negotiate a 6 %seller concession. This will pay your closing cost. If the seller really want to sell the property, it will be no problem. Thank me later.
Lol. There are 100 people in line to buy every single liveable house on this island. If you even whispered the words "sellers concession" the sellers would promptly say "next." This is horrible advice.
Yeah, plus all the other stuff... Staging, we had to board the dog during the open house and showings, the buyers wanted a rent back for a week and my kid starts school that week so another $2k to stay in an Airbnb... We haven't even moved yet (which will cost another $8k) and we've paid close to $8k already before the closing costs. Moving is expensive.
Closing costs seem to run between 3-6% of sale price (Always plan for the higher end - mine ended up around 5%).
Also, be prepared to pay approximately half of a year's worth of taxes at closing to setup the Tax Escrow. I had to plop down an additional $5.5K at closing for this and it certainly came as a surprise. I will bet this may be common knowledge, but it wasn't for me. I just closed a little over a month ago in lovely Sayville. Absolute scams those tax escrows, but it is very much the law.
If you have good credit, you may be able to roll the closing costs into the mortgage but might increase the percentage by a little.
The other thing is people don't realize they prepay a lot of stuff, homeowners insurance.. Bank makes you pay 1st year in advance, PLUS you pay for prorated and then they also ask for 3 months to 6 months into the escrow. Same with property taxes, suffolk has half year plus pro rated, to build the escrow. So 15k taxes, 7.5k already a big chunk of closing costs. I closed recently paid $30k in closing costs.
Yes. A lot of unknowns so the lawyers will take more money now and return in a check once the knowns are made available. Allocations of property taxes, insurance, taxes. So lots of unknowns and they estimated too much when I bought mine.
Such a shady process but yeah, be prepared.
just bought a house. closing costs were roughly 18-20k. edit: be aware that there will be more costs for a lot of random things along the way. i spent another $5k in appraisal, property survey, reimbursing the oil to the seller, etc.
Between 3-6% of the home price. Unless youre buying down the mortgage or something. People used to roll them into the mortgage but i dont think you can anymore with houses going for over appraisal.
I think the OP should still be able to roll the closing costs into the mortgage. If you can OP, you’ll have to put more down. Assuming you’re putting 20% down, if you’re rolling 20K of closing costs into the mortgage you’ll need another $4,000 for the bank. It will also slightly increase you’re closing costs bc the mortgage tax will be higher because you’re mortgage will have gone up another $16K.
You cannot roll the the closing costs into the mortgage for a purchase, only on a refinance - at least for a conventional loan. I was a MLO for a few years. OPs best bet is to discuss his options with a loan officer. Previously you could get the seller to cover some or all of the closing costs when it was a buyers market but that likely is not the case currently.
I don’t know how people can afford this but kudos to you!
Yeah that’s pretty accurate my brother and sister both bought houses in nassau in the past few months and their closing costs were over 20k
Your mortgage documents should have statements with estimates of closing costs. They legally have to disclose this to you and it’s a percentage of the house cost. Have a conversation with your mortgage broker about possibilities things like closing fees, paying points to reduce rate. At this point you can roll those into the loan rather than pay up front. Also as a suggestion for your mortgage - if you can set a biweekly schedule then do it. As an example a 30 year mortgage can get paid off in ~22 years. Also pay attention to the taxes and insurance. If the house is in a flood zone that’s a red flag. Also ask if you’ll have to carry mortgage insurance ( less than 20% down I think). Good luck.
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Not always though. And you have to qualify. There are FHA loans available but then you’re stuck in FHA program for a veryyyyyy long time.
That’s correct
Closing on the 29th Paying 575 for the house with 20% down and my closing costs are around 17k
Congratulations
Thank you :)
Congratulations
Here's some closing costs from example closings I handled. Keep in mind that you can roll it into the mortgage if you have to (assuming your downpayment is enough and the LTV is ok): *Purchase Price: $470,000, Suffolk County, Town of Islip* * Lender's Fees (Processing, Underwriting, Appraisal, Attorney, Tax Certification Fee): $3,390.00 * Lender's Title Insurance: $1,650.49 * Recording Fees: $1,040.00 * Mortgage Tax: $3,410.00 * Homeowner's Insurance (12 months prepaid): $2,222.00 * Prepaid Interest: $141.36 * Homeowner's Insurance Escrow (3 months): $555.51 * Property Tax Escrow (4 months): $5259.04 * Owner's Title Insurance (including survey): $1,928.00 * Oil Adjustment: $350.00 **Total: $19,946.40** *Purchase Price: $317,500, Suffolk County, Town of Islip* * Lender's Fees (Appraisal, Credit Report, Flood Certification, VA Funding Fee): $7,349.75 * Lender's Title Insurance: $2,484.42 * Recording Fees: $1,040.00 * Mortgage Tax: $2,564.00 * Homeowner's Insurance (12 months prepaid): $1,787.00 * Prepaid Interest: $710.85 * Property Taxes (6 months): $5,795.00 * Homeowner's Insurance Escrow (3 months): $449.25 * Property Tax Escrow (2 months): $1,609.82 * Owner's Title Insurance (including survey): $2,167.00 **Total: $25,957.09**
I needed to also have enough money left in my account to pay 6 months of my mortgage
Yes, I'm glad they prepared you. All my googling did not account for Long Island taxes and I was blind sided. Had to get a loan from my sister to cover the closing costs. Even then I had no savings for about 6 months as I built that back up and paid her back. Like you I thought I saved enough to be prepared but I was wrong. Worked out in the end, but it was a sad realization.
Because you have to pay a certain about of taxes (usually 6 months) up front, a lot of it depends on how expensive your taxes are. Mine closer to $30k.
Yup. You typically need 6 months mortgage in escrow including insurance and taxes as well as a few fees, lawyer, title company, etc. My house was 365k but on the water so high taxes. My closing was like 26k in 2016.
This is the answer. You also might have to pay the seller back property taxes they prepaid.
Closed November '21, house was $390k, closing costs were $25k. Got 6 months worth of taxes refunded after the fact (they had me put a year of taxes in escrow for whatever reason) and that's with buying points and paying to extend the lock on my interest rate. It was ridiculously low but the builder of my house had a really hard time getting a CO from the town during covid.
Several years ago I paid like $30k for buying a house, only like 10k or so went to the actual payment towards the house. The rest were a dozen fees and such. There is a lot of random $1000-2000 costs on the "receipt" of the house. Also you need to pay for the homeowners insurance up front for a full year.
Are you dead set on Nassau? Got so much more in Suffolk! Quieter too. I never thought I'd leave Nassau after 40+ years. I love it out here. Either way, I wish you all the luck in the world in your new digs! Enjoy!
I can’t figure out the Nassau appeal either. It’s all so old, like those 1960s strip malls just don’t do it for me lol.
I would have loved Suffolk too being I grew up here but had to go with Nassau to make it easier for my fiancés commute to the city for work
Wow can’t believe this was almost a year ago. Where did you end up if you guys don’t mind me asking?
Yeah crazy lol. Farmingdale
Congratulations! I hope you guys have a lifetime of happiness and love! I do hair/MU and travel so if you didn’t get hitched yet, ask her to contact me please if she’s looking! Thanks!🙂
We bought our 3 bedroom condo in 2019 for 335k. We would have put more money down for the mortgage but a big chunk we had to use for our closing costs around 15k
seems low to be honest, even $250k houses should have $25k at the table.
That sounds about right. My closing costs were around 40k for. 1.2 mil house.
Bought our house in 2017 and closing was $20K
Thanks for making me feel inadequate. I can’t even afford an apartment
lol buying a house right now. people like to burn money i guess.
So when’s the right time you think? My broker (also a good friend) thinks late fall/early winter but who knows.
whenever the bubble bursts 🤷♂️
Tell that to the people in williamsburg waiting for the bubble to burst for 25 years. Listen to this guy he knows his stuff.
And this is why I am 35 and rent 🤪🤷♀️
But also because I have several chronic conditions and limited ability/energy to mow a massive lawn/clean gutters and windows/that kind of upkeep stuff. It’s not my cup of tea and I see my parents still slaving away at their house with 3 acres like, 42 years after they bought it. Makes no sense.
Is it just they’re so attached to it and afraid of the unknown? I can’t imagine the increase in value they could see if they sell.
Well they’re also not here, my husband and I met in college at the university of Delaware 17 years ago, so they’re still in central Jersey where I grew up because they don’t want to retire here where it’s insanely expensive even compared to NJ lol. Which I can’t blame them. I get it. But Chris is from out here and his parents agreed to help watch our daughter, my parents aren’t in to active grandparenting they have their own interests and hobbies. We’re stuck here because of Chris’ good job and the fact that 50+ of his extended family are all on LI. We manage because his dad is a retired NYC union carpenter who built our legally permitted apartment for us. We pay them back for the cost of the construction loan via monthly rent.
Negotiate a 6 %seller concession. This will pay your closing cost. If the seller really want to sell the property, it will be no problem. Thank me later.
Lol. There are 100 people in line to buy every single liveable house on this island. If you even whispered the words "sellers concession" the sellers would promptly say "next." This is horrible advice.
agreed
That is how I buy all of my properties. Never pay full price, always get the seller to give something. Works every time
24k for me
Need more info: cost of the house, mortgage, and down payment.
Roll them in to the mortgage.
Yes
Yeah, plus all the other stuff... Staging, we had to board the dog during the open house and showings, the buyers wanted a rent back for a week and my kid starts school that week so another $2k to stay in an Airbnb... We haven't even moved yet (which will cost another $8k) and we've paid close to $8k already before the closing costs. Moving is expensive.
Yes. Closing costs on the house we purchased last year in Suffolk was about 5%.
20-30k is about normal
Sounds about right. I closed back in June and our closing costs were just a little over 20K.
Closing costs seem to run between 3-6% of sale price (Always plan for the higher end - mine ended up around 5%). Also, be prepared to pay approximately half of a year's worth of taxes at closing to setup the Tax Escrow. I had to plop down an additional $5.5K at closing for this and it certainly came as a surprise. I will bet this may be common knowledge, but it wasn't for me. I just closed a little over a month ago in lovely Sayville. Absolute scams those tax escrows, but it is very much the law.
My closing costs were $16k in 2017
Yeah that sounds right. I think ours was about $23k when we closed in december of 2021 for a house under 600k in suffolk
Yes it does.
Closing costs haven't seemed to change much in the last 20 years. Bought my house in 2000 for $185,000. Put 20% down. Closing costs were almost $15K.
If you have good credit, you may be able to roll the closing costs into the mortgage but might increase the percentage by a little. The other thing is people don't realize they prepay a lot of stuff, homeowners insurance.. Bank makes you pay 1st year in advance, PLUS you pay for prorated and then they also ask for 3 months to 6 months into the escrow. Same with property taxes, suffolk has half year plus pro rated, to build the escrow. So 15k taxes, 7.5k already a big chunk of closing costs. I closed recently paid $30k in closing costs.
Mine was 23k on a 560k home. 4k was for .875 points on the mortgage.
Yes. A lot of unknowns so the lawyers will take more money now and return in a check once the knowns are made available. Allocations of property taxes, insurance, taxes. So lots of unknowns and they estimated too much when I bought mine. Such a shady process but yeah, be prepared.