102,000.00 and have to pay 6% closing cost..how much is that?
2007-04-11 04:05:41 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I came up with 6152.00 as well, why is my realtor trying to tell me almost 8000.00?? the seller says he would even pay 3%--which is a little over 3000.00 right? i think i am being screwed
2007-04-11 04:13:02 · update #1
It appears you are smarter than the agent. The escrow agent can give you a more accurate number or your lender can. 8K seems very excessive, good thing the seller will contribute 3%.
2007-04-11 04:27:03 · answer #1 · answered by jkevinsimpson 3 · 1⤊ 0⤋
Your numbers are correct. The 6% probably includes the amount required to set up your reserve account for property taxes and fire insurance which is why it seems high to some but when you are putting down less than 20% that is an investor requirement.
Either that or they are estimating 6% for closing costs and the other $2000 is the reserve account requirement.
I've been a mortgage lender for more than 20 years and $6120 on $102,000 sounds pretty close to me.
With a 3% seller donation you are at the maximum contribution level for a minimum down payment loan per investor guidelines.
2007-04-11 11:43:10 · answer #2 · answered by mazziatplay 5 · 0⤊ 0⤋
If the closing costs are exactly 6%, that would be $6120. But there are a number of different costs involved, and 6% can only be an estimate. Such costs may include points to the lender, escrow fees, title insurance, prepaid taxes and fire insurance, recording costs, postage and delivery fees, prorated utilities, and possibly other charges. Ask your realtor for a list.
2007-04-11 11:38:06 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It is 6% of the mortgage that you get for the house. If you put down 20% that means you will need a mortgage for 80% of 102000 which is $81600. Multiply that by 6% (=.06) to find the costs are $5140.
Some of the numbers in those closing costs are unavoidable, like title search and filing fees. Others are from your lender who could waive or reduce them if they cared to (or could even pay all the costs themselves). That is a whopping big set of closing costs. You should look around for a better deal.
2007-04-11 11:14:50 · answer #4 · answered by Rich Z 7 · 0⤊ 0⤋
Where did you get the idea that your closing costs would be 6%? That sounds high to me...
2007-04-11 11:11:42 · answer #5 · answered by Fearless Leader 4 · 0⤊ 0⤋
That sounds outrageous for a 102k loan. I would ask for a break down of the costs.
RE Agent,
Remax
2007-04-11 21:32:59 · answer #6 · answered by frankie b 5 · 0⤊ 0⤋
$102K X 6% = $6,120.
2007-04-11 11:09:45 · answer #7 · answered by SGElite 7 · 0⤊ 0⤋
$6120.00
2007-04-11 11:09:45 · answer #8 · answered by crazycatlady 2 · 0⤊ 0⤋