Another OFF Topic: Closing Cost Formula?

Whoson1st · May 14, 2005

Does anyone know how to figure the closing cost when buying a house or townhouse? Is it a simple formula that each lender uses or is it figured differently from one to the other (banks one way---mortgage companies another) Guessing it's a % of the price--but maybe not this simple.
Thanks in advance. Good Luck to all!

LEYKIS101 · May 14, 2005

I don't think there is a set formula as all lenders have different fees and different rates. Ive been told by a couple of RE agents to figure 3% of your purchase price for a good closing cost estimate. Of course loan points, if you have any, will possibly cause your fees to vary quite a bit.

Whoson1st · May 14, 2005

"Points"----I'm not talking about handicapping here! LOL Thanks--I think.

LEYKIS101 · May 14, 2005

Whoson1st said:
"Points"----I'm not talking about handicapping here! LOL Thanks--I think.

Points ALWAYS have to be COVERED!

:103631605

:lolBIG:

Whoson1st · May 14, 2005

Can you spell _gimmick? Thanks--When the word points is mentioned to me, I'm going to very politely tell them--goodbye. LOL!!!

LEYKIS101 · May 14, 2005

Good idea. With all the loan options out there most of the time paying points just isnt worth it, as you've found out.

JohnnyDetroit+ · May 14, 2005

Whoson1st,

Point make sense if you are planning to stay in the house. On a purchase points are 100% tax deducitble the 1st year (unlike a refi). Take the cost of the points and figure the payment before and after. Where do you break even, how much do you save each year after and what does the tax write off save you. If you are a chronic refi person or plan to move in a few years, always a no on points. But if you find a house that you could be in for a while, with rates where they are, spend the money. Especially if you can get seller concessions to pay for them