Tuesday, August 7, 2012

Closing costs more in NY

From the Daily News:

HERE’S ONE more reason why it’s so ridiculously expensive to live in New York: We have the highest mortgage closing costs in the country.

For the third year in a row, New York State leads the way in fees associated with getting a home loan, according to a new survey from Bankrate.com.

The average closing cost here is a whopping $5,435 for a $200,000 mortgage on a single-family home purchased with a 20% down payment.

Compare that with Missouri, the state with the lowest closing costs, where they pay an average of $3,006. The national average is $3,754.

In doing its analysis, Bankrate looked at fees charged by lenders, as well as third-party fees for services such as appraisals and title insurance. All of those things cost more in New York, Bankrate said.

The news wasn’t all bad. Closing costs fell 12% in New York as banks competed to snare business.

Melissa Cohn, president of Manhattan Mortgage Co., noted that New York homebuyers are also saddled with a mortgage recording tax. In New York City, that amounts to about 2% of the loan amount, she said.

New York State also requires that banks use attorneys when closing on a loan. That raises your closing costs, too.


Anonymous said...

wow...the new shocker to the new york liberal/dem. will be the OBAMACARE LAW : 3.8 % INVESTMENT INCOME FEDERAL TAX, on the sale of your house and possibly CONDO/CO-OP ,on 1/2013. for a $800,000.sale , you will pay his gov.$30,000.

the capital gains tax in 2013 will increase from 15% to 20%.

hows that for CHANGE, the OBAMA WAY ?

Anonymous said...

I think you are a little low. The rule of thumb for closing cost is 5% of the mortgage. If you are putting 20% down on a $200,000 house you are borrowing $160,000. 5% of %160,000 is $8,000...

Anonymous said...

"New York State also requires that banks use attorneys when closing on a loan..."
Unfortunately, in NY, the banks forces the borrower to pay also for the bank's own attorneys.

Anonymous said...

I just bought a house in SI...

$453k sale -- 15% d/p ($68k) – $385k mortgage -- $3,900 closing credit...

I would have put down 20% if closing fees weren't so damn high...

The closing cost (prior to closing credit) was approximately $19,000... so the estimated 5% on the mortgage price is accurate.

Luckily a decent amount of that money was paid over the two months prior to the closing...

Get ready to gouge your eyes if you didn’t consider closing costs…

origination fee: $699.00
transfer taxes: $6,900.00
government charges: $250.00
appraisal fee: $370.00
credit report: $22.00
owners title insurance: $1,968.00
flood certification: $19.00
survey: $975
buyer attorney fee: $900
escrow/taxes/ first payment: $1,572
title insurance: $2,327
title services and lender insurance: $2,327.81
1 year home insurance: $961

Anonymous said...

and they say renting is thrwoing money away


what a joke

Anonymous said...

To the first poster:

1) Sales of primary residences have been and still will be exempt from federal capital or investment income taxes, whether or not the Bush tax cuts expire.

2) Investment properties would be taxed on realized capital gains (i.e. any positive difference between purchase and sale price, minus capital improvements,) not on total sale price as you suggest.

3) The 3.8% Medicare investment income tax will apply only to individuals earning over $200,000.

By the way, "his" government is "our" government, whether you disagree with "him" or not. It's just that we get the government we deserve, and we deserve to get it good and hard.