What are closing costs explained

Below is an estimated closing cost sheet for a $100,000 property. The list below reflects both buyer and seller closing costs. Real estate commission is not included below as it can vary in percentage. Title insurance is required on any financed deal, and is highly recommended, but not required, on a cash deal as well. Title insurance protects you from claims of previous owners on the title of the property. Lien search, required on all deals, checks to make sure there are no liens or mortgages on a property.

Lender/Mortgage brokerage points and origination fees can be very costly. These are basically how the mortgage broker gets paid. These can range in price and depending on the type of loan all or part can be paid by the seller if negotiated in the contract. Discount points is cash paid upfront by the buyer to lower the interest rate of the loan. These will be paid at closing.

Other items like appraisals (professional brought in to give a determination of value for the lender) , recording fees (fees paid to record documents in the public record) closing fees (how the closing company gets paid to make sure all the necessary documents are signed, notarized, collected, and sent to the appropriate parties) are all additional closing fees which you need to be aware of.

Taxes are also paid at closing. Doc stamps on the deed (paid by the seller) are paid based upon total purchase price. These are calculated by multiplying the purchase price by.006 in Dade and .007 in Broward to get the total due. Doc stamps on the mortgage are paid by the buyer. They are calculated by multiplying the total mortgage by .0035. Finally intangible tax which is paid by the buyer on the mortgage is calculated by multiplying the new mortgage amount by .002. This is a summary of most of the typical closing costs on a deal. While it may seem confusing for those of us that deal with it on a daily basis it is second nature. That being said if you have any questions feel free to contact me and I will happily answer any questions you may have.

Closing Cost Estimation

Buyers: 100k purchase price for base
Title Insurance: 5.75 per 100 or 575.00 ~ round to .6% or .006
Add closing fee: $450
*Lien Search & Abstract: $320
Recording Fees: $25.00
Title Insurance: 5.75 per 1,000 or 575.00
On financing deals there are endorsements which can bring total cost up to around 675
To be safe we can round to .7% or .007
Doc stamps on the mortgage are .35% or .0035
Intangible tax is .2% or .002
So figure 1.3% or .013
Add closing fee: $695
*Lien Search & Abstract: $320
Recording Fees: $180.00
Mortgage Brokerage Fees: Vary
Sellers: 100k purchase price for base
No difference for Cash and Finance
Doc Stamps on Deed:
Miami-Dade: .6% or .006
All other counties: .7% or .007
Title Insurance if they are paying is the same as for cash buyers
Closing Fee: $425.00
*Lien Search & Abstract: $320
Financing on houses will require a survey: approximately $300.00
Real Estate Commission: Vary
*The Lien Search and Abstract as well as the owner’s policy of title insurance are determined by the contract.