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Closing Fees

Closing fees generally range from two to seven percent (or more). Example: a home for $200,000, one may expect to pay between $4,000 and $14,000.

"Some buyers are unaware of closing costs"

The following is a list of typical closing costs:

Loan Origination Fee: Generally the most expensive closing cost. Lenders charge points to originate a loan anywhere from 1-3% of the loan amount. A $200,000 loan with a 2% point fee will add $4,000 to your closing cost. If you are strapped for cash, you can get a no-point loan, but you will pay a higher interest rate.

Loan Application Fee: This is a non-refundable fee that the lender charges when taking your application. Costs range from $0 to $350.

Loan Processing Fee: The charge to process you paper work usually costs between $75 and $125.

Credit Report: The lender hires a credit bureau to run a credit check on you at a cost of about $0 to $150.

Appraisal Fee: Your lender will hire an appraiser to make sure your home is worth the amount you're paying for it. The cost is normally between $200 to $450.

Insurance Escrow: Most lenders charge between 15-20% of the cost of your annual home insurance policy. The first year's premium is usually paid upfront or before closing.

Property Tax Escrow: This fee covers your estimated tax bill. Generally, you can expect to pay between 33-55% of your annual property taxes, depending on the time of the year in which you close and when the next tax payment is due.

Prepaid Interest On the Loan: This is the amount of interest you'll pay from the day of closing until the end of the month in which closing occurs. Although you normally pay your mortgage in arrear (May 1 for the month of April), your first payment is due prior to closing.

Recording Fees: After the closing on your home, your deed and mortgage must be recorded with the county at a cost of about $25 to $125.

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