Closing costs can vary from one lender to another. When shopping for a mortgage always look at the total cost of the loan not just the rate. For example Lender A may offer 7% with 1 point and $800.00 in closing costs and Lender B may offer 7% with 1.125 points but only $475.00 in closing costs. On a $100,000 loan Lender B is cheaper but on a $250,000 loan Lender A is cheaper. Typical closing costs by the lender usually include appraisal, credit report, loan processing, and tax service fees. These fees can range between $400.00 and $1200.00. Other fees you may incur are title insurance fees, attorney fees, escrow fees and prepaids. Prepaids usually include fire insurance, property taxes and prepaid interest. Here is a typical breakdown of the closing costs on a $100,000 loan at 1 point. Please remember to always ask your lender for a good faith estimate of closing costs before you make any commitment. Points- $1000.00 Appraisal- $300.00 Credit Report- $20.00 Processing Fee- $150.00 Tax Service- $69.00 Title Insurance- $375.00 Closing Fee- $150.00 Taxes- $225.00 Interest- $658.00 Insurance- $350.00 Total- $3297.00
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