Closing Cost

Closing Cost should not be more than $4k-$5k, including prep-paid interest, attorney fees, lenders attorney,insurance, etc...

Coop owners do not pay the mortgage recording tax in NY and UNLESS you are buying from a sponsor, the buyer does not pay the transfer tax.

If over a million, add 1% mansion tax. If buying from sponsor, about 2% in transfer taxes. Otherwise, 3-5K, assuming a mortgage at par.

For a condo that is more than a million dollars, closing costs can be as high as $75K

Is that really true...75K cash just in closing costs?

perhaps that high for new developments - definitely not that for an existing building

Only that high if you're paying sellers transfer taxes. 6 months ago we closed on a condo and were able to negotiate that out. Today I hear negotiation is much tougher. Not $75 but $68 with mansion tax, and mort insurance.

Rele of thumb - approx. 2% for coop and approx. 3% for condos thay which includes mortgage fees, attorney fees. new developments and new conversions add approx. 1.825% transfer taxes. over $1m add another 1%.

Get yourself a real estate broker. You can not just say I want to make sure I have enough cash for closing costs. If you are thinking about buying a co op, they will most likely requir for you to have two years of maintanance and the mortgage payments after closing. You need to get a good advice.

I am shopping for Condo's in the 900k to 1.2m range. With a purchase price of 1 Million, financing 90 percent, with 1000 in common charges monthly and 1000 in taxes monthly, according to my researching, the closing costs are as follows:

Closing Cost Estimate
Mortgage(bank) fees $5,000.00
Bank(Mortgage) attorney $800.00
Short Term Interest $4,379.75
Tax Escrow - 6 months $6,000.00
Recording Fees $500.00
Mortgage Tax(1.925%) $17,325.00
Title ($700 per 100k) $7,000.00
Municipal Search $500.00
Managing Agent $500.00
Common Charge - 1 Month $1,000.00
RE Tax Adjustment (6 months) $6,000.00
Mansion Tax (1%) $10,000.00
Move in Fee $1,000.00
BS Small Fees ( Under $100) $1,000.00
Appraisal $1,000.00
Application fee $750.00
Doc Prep $650.00
Processing Fee $300.00
Attorney $1,500.00

I'd pay twice those closing costs to buy an apartment in the maison east...the best building ever!

lol

Why are your bank fees so high - $5K seems way high to me? And why are you paying 6 months of tax escrow and 6 months of RE tax adjustment?

Unsure on both questions, I took it from some guides I found. What do you think the totals should be #13?

#10, Your bank fees seem high. I got my mortgage through CitiMortgage and it was a flat $550 for all bank fees, bank attorney, and appraisal. And your attorney is on the low end.

To #13, if you want the mortgage company to pay the real estate taxes on your behalf (and charge you for it, of course), you have to put a few months in escrow. Depending on when the taxes are due, you generally pay 3-6 months upfront. There should not be a RE Tax adjustment as well as a RE Tax Escrow. It is an either/or arrangement, depending on who is paying the Real Estate Taxes directly to the tax authority. Your title insurance is way to high. The premium should be $3900 for a $1MM place.

The numbers are ranging from 3 - 75k. Are the huge discrepancies in these estimates a differance between coop and condo only or are people counting different things as "closing cost"? This list in post #10 is at least well researched.

New development condos are the most expensive and put you at the high end. Regular condos are more expensive than coops but not nearly as expensive as new development condos.

#16, there is a HUGE difference between closing on a co-op and closing on a condo. Assuming a mortgage at par (no points paid at closing), the biggest closing cost for the buyer is the mortgage recording tax. For an apartment below $1MM, the second largest closing cost for the buyer is the title insurance. There is neither a mortgage recording tax nor title insurance for a co-op.

For both a condo and co-op, add 1% for the mansion tax if $1MM or more and about 1.9% if buying new construction or from sponsor.

There are also timing issues. Depending on when you close, you will pay more or less in short term interest and real estate tax escrow.

Many of #10's numbers are very high or just wrong. Unless he is a subprime borrower with few options, he should be able to get a market rate mortgage with the application fee, credit checks, banks fees, bank attorney, appraisal, and document fees for about $1000. And title insurance rates are regulated by the state at FAR less than $700 per $100,000. His property and mortgage title insurance should be about $4700. Finally, you pay RE tax adjustment or RE tax into escrow, but not both.

#15, that's why I was asking why both of those entries for real estate taxes where there. I know that 1 entry should be there, but I was not that clear in my question.