Closing Costs 5%?

Jeneeepoo · March 2012

Hello Girls,

I havent asked my mortgage broker for a GFE yet, but I asked my Realtor what closing costs would be and he said to plan for 5%. Does this seem high? We live in South Florida.

Thanks!

Lulu0802 · March 2012

That does seem high! Is he including your down $$ in that? It would seem about right if you're putting 3.5% down.

In PA closing costs are ~ 2%. There's a 1% transfer tax and then the rest are fees. In Philly it's closer to 3% because the transfer tax is 2%, but that's just in the city.

Jeneeepoo · March 2012

He told me to plan for 5% in addition to the deposit, which is 3.5%.

Seemed very high to me too! Maybe he wanted us to plan for higher then needed just incase. I need to look more into it, but was curious what others were paying.

kaylie622 · March 2012

It's possible that he's giving you the highest possible amount. I've found that the biggest determining factor is the amount of property taxes since reimbursement to the seller is part of the closing costs (that might not be true everywhere). We've seen them be around 3-4% in addition to our down payment.

MNVegas · March 2012

We were really surprised to find out how much more it costs in Florida to close on a house than here. We are building and we were quoted about 5% for closing costs. Fortunately our builder will be the one paying for cc.

pinkyp · March 2012

Closing fee for us was close to 5% mostly due to prepaid items (property tax, homeowner insurance). Like PP said, that included property tax refund to previous owner.

marriedonmaui · March 2012

Ours was about 3.5% ~$10k on a house that we bought for $268,000. Plus our down payment.

dapotato · March 2012

it depends on a lot of things. we heard 2-5%, so we planned for 5%. luckily, it's closer to 2% for all closing costs, and we're only paying for the ones traditionally paid for by the buyer in our area.

=Jewel= · March 2012

Our broker quoted 3%. We ended up at over 4%.

I was not happy, and obviously would have preferred that the numbers went in the opposite direction.

CCs really can vary widely by region.

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