Closing costs on a house in Brooklyn

I recently had an estimate on closing costs done by a mortgage broker. The theoretical numbers we used was a two family house at 700k with 10% (70k) down. I’m awaiting a breakdown, but the estimated total closing costs including state tax etc. were approximately 20k. Does this sound right? Of course I’m going to shop around; this was for a prequalification. But I just want to make sure this isn’t out of the ballpark. I was hoping they would be closer to half of that, more like 10k. Thoughts?

deebee

in Mortgage 12 years and 10 months ago

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deebee | 12 years and 10 months ago

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Thanks for the follow-up bklnite. Yes, I think cohenlink is obviously way off the mark or something was lost in translation.

Bklnite | 12 years and 10 months ago

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Actually I overstated a bit the mortgage tax due to purchaser (I think the nyc.gov site includes the total percentage due, part of which is payable by the lender). From a corcoran calculator the quick summary goes like this – Mortgage recording tax: 1.8% of mortgage (if <500k) or 1.925% of mortgage (if >500k) Title insurance: .5 to .8% of purchase price All the other stuff: 4 or 5k http://www.corcoran.com/mortgagecalculator/index.aspx?page=MortgageCalculator#ClosingCostCondoTwnh

mortgagepro | 12 years and 10 months ago

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My closing costs estimate comes out to $17855, so 20k is not that way out of line. (Keep in mind that you will also need monies to establish escrows as well.) Feel free to contact me if you would like a detailed breakdown. -Adam Roberts  South Shore Mortgage adamr@fast2fund.com 631-956-0111 x218

cohenlink | 12 years and 10 months ago

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usually closing cost = 20% of purchase price.

deebee | 12 years and 10 months ago

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Thanks, that link is super helpful. For others wanting this info, just take the “<" off the end of the link, it's botched html being added to the URL.

Bklnite | 12 years and 10 months ago

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The biggest part of the closing costs when borrowing 630k will be the mortgage recording tax. If I did the math right it’s $13,515\. http://www.nyc.gov/html/dof/html/property/property_rec_mortgage.shtml You can shop around to compare the items that make up the other $6.5k but that big 13.5k chunk won’t change.