$500 towards Your closing!
When your mortgage a property, there are a number of costs associated with it and we understand that this is a delicate and complicated process. In order to make a better decision for yourself, you should be fully aware on what you will be required to pay. Knowing the real estate closing costs are an important part of this process. Vanguard Mortgage online closing cost estimator helps you get an estimate of what your mortgage closing cost would be.
If you’re wondering how much is the average closing cost on a house that you’re willing to buy, using our online calculator to estimate your average closing costs is pretty straight forward. Go through the following steps and you’re good to go.
The average price of a house is between $200,000 and $300,000. This corresponds to real estate closing costs between $1620 and $2430.
This closing cost amount is inclusive of all costs such as settlement fee, appraisal and pertinent insurances.
While the dollar amount of buyer’s average closing in gives you an estimate of what the cost would roughly be, it is helpful to know how much are closing costs for buyers as a percentage of the property price.
As a general rule, a property with a higher price tag would cost a higher closing amount, but the typical closing costs for buyer as a percentage of the property price are around 1.98%.
Typical refinance closing costs range between 3% and 6% of the total loan you acquire. Although it may seem like a higher amount, it may be a better option in some cases. Therefore, if a refinance helps lower your interest rate on the closing costs, it is a good idea to go for it.
It is quite easy to get lose track of all the terminology involved when you are calculating your closing costs, so here are some of the most common terms used.
Underwriting fee — It is charged by lenders when they offer to evaluate your loan application to ensure its approval without problems.
Appraisal fee — This is charged by lenders to evaluate the actual worth of the property by a certified appraisal company.
Origination fee — This is charged by lenders for creating a new application for a loan.
Lender’s Title Insurance — This pays for an insurance for the lender in case the property has title issues and it is claimed by someone else at a later time.
Survey — This is not a survey of the property itself, rather it is a survey of the location where the property is situated.
Settlement fee — A settlement agent, which may be your title company will charge a settlement fee to facilitate the transactions that need to be made.
Recording fee — This is charged by the state government to record the change in titles of a property in public records. Our seller closing cost calculator adds the state’s current recording fee by default.
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