What Are My Closing Costs?
Closing costs also vary based on the location and price of your home or property as well as other factors such as lender fees, commissions, insurance, to name a few.
If you want to make a quick, ballpark estimate, the rule of thumb is 3% to 6% of a property’s total value.
So, what goes into closing costs?
Title Insurance Varies based on the cost of your home with fees set and regulated by the PA Department of Insurance. It’s a one-time payment but it lasts as long as you or your heirs own your property.
Mortgage Lender Fees. Entirely variable based on your lender.
Per-Diem Interest. The interest of your loan from the closing date to the last date of the month of purchase.
Prorated Property Taxes. Pro-rated based on the number of days you will own the property within the taxing period.
Deed Transfer Tax. Buyers and sellers traditionally, but not always, split this. It’s dependent on your sales contract. The tax itself is 1% of the home’s sales price but some municipalities charge more.
Appraisal Fee
Courier Fee
Closing Protection Letter
Commissions
Broker / Transaction Coordination Fee
Prepaid Homeowners Insurance
PMI or Private Mortgage Insurance. Insurance coordinated by your lender, usually required when you have a conventional loan and make a down payment of less than 20 percent.
HOA Fees. If you are buying a townhome or condominium, there may be monthly Homeowner’s Association fees collected to pay for amenities, maintenance, and insurance of the complex.