NON-MORTGAGE-RELATED EXPENSES - BASED ON A $1,000,000 PURCHASE
| COST TYPE | ESTIMATION | EXPLANATION |
|---|---|---|
| REAL ESTATE BUYER BROKER FEE |
ALL COMMISSION IS NEGOTIABLE, TYPICALLY 3% OF PURCHASE PRICE
|
Can be a flat fee, negotiated through seller concessions, and bundled into the purchase offer.
|
| ATTORNEY’S FEES |
$2,500 - $5,000
|
New York State requires all parties to areal estate transaction to be represented by counsel.
|
| NY STATE MANSION TAX |
$10,000
|
For properties priced at $1,000,000 or more, tax rates range from 1% - 3.9% of the sales price. The mansion tax does not apply to four-family homes.
|
| RECORDING FEES |
$250 - $750
|
All property-related documents must be copied, certified, and filed with the New York City Register.
|
| OWNER’S TITLE INSURANCE PREMIUM |
$4,500
|
$450 per $100,000 of purchase price. Variable by transaction.
|
| MUNICIPAL SEARCHES |
$750 - $1,000
|
Title searches for taxes, c/o, liens, judgments, etc.
|
| BUILDING APPLICATION FEE |
$250 - $700
|
Varies by building.
|
| BUILDING CREDIT CHECK |
$75 - $125
|
Varies by building.
|
| MOVE-IN FEE |
$250 - $1,000
|
Varies by building.
|
| MOVE-IN DEPOSIT |
$1,000 - $1,500
|
Usually refundable after closing/move-in.
|
MORTGAGE-RELATED CLOSING COSTS - BASED ON A $1,000,000 PURCHASE WITH 80% FINANCING
| COST TYPE | ESTIMATION | EXPLANATION |
|---|---|---|
| NYC MORTGAGE TAX |
$15,400
|
1.925% of loan amount minus $30 for mortgages $500,000 and higher; 1.8% of loan amount minus $30 for mortgages of less than $500,000.
|
| BANK ATTORNEY FEE |
$1,000 - $1,250
|
The bank is represented by an attorney and the cost is passed onto the borrower. Varies by bank.
|
| MORTGAGE ORIGINATION FEE |
$500 - $800 PLUS POINTS
|
Fee that goes to the mortgage broker or banker. Between 0 - 3%, negotiable. A point is 1% of the loan amount.
|
| MORTGAGE APPLICATION FEE |
$350 - $650
|
Charged by bank when purchaser applies for mortgage loan.
|
| PROCESSING FEE |
$330 - $500
|
Charged by bank and typically collected at closing.
|
| APPRAISAL FEE |
$500 - $2,000
|
Appraisal lets a lender know what the loan collateral will sell for in a worst-case scenario. No bank will lend without an appraisal. Fee is usually paid upfront and non-refundable.
|
| CREDIT REPORT FEE |
$20 - $50
|
Lender fee to check borrower’s credit.
|
| TAX ESCROW |
TWO TO SIX MONTHS OF YEARLY TAXES AND INSURANCE
|
The bank will establish an escrow account for future taxes and insurance. Borrowers will deposit about two to four months worth of taxes and insurance to hold asa cushion in case of future increases. The escrow balance will be returned to the borrower upon payoff of the loan.
|
| LENDER’S TITLE INSURANCE PREMIUM |
$930
|
Insures lender as first lien holder.
|
| HOMEOWNER’S INSURANCE |
$1,000 - $5,000 PER YEAR
|
Required by bank for condos, townhouses, and single/multi-family homes.
|
| CONTENTS INSURANCE |
$1,000 - $5,000 PER YEAR |
Required by bank for condos, townhouses, and single/multi-family homes. |
NON-MORTGAGE-RELATED EXPENSES - BASED ON A $1,000,000 PURCHASE
| COST TYPE | ESTIMATION | EXPLANATION |
|---|---|---|
| REAL ESTATE BUYER BROKER FEE |
ALL COMMISSION IS NEGOTIABLE, TYPICALLY 3% OF PURCHASE PRICE
|
Can be a flat fee, negotiated through seller concessions, and bundled into the purchase offer.
|
| ATTORNEY’S FEES |
$2,500 - $5,000
|
New York State requires all parties to areal estate transaction to be represented by counsel.
|
| NY STATE MANSION TAX |
$10,000
|
For properties priced at $1,000,000 or more, tax rates range from 1% - 3.9% of the sales price. The mansion tax does not apply to four-family homes.
|
| RECORDING FEES |
$250 - $750
|
All property-related documents must be copied, certified, and filed with the New York City Register.
|
| OWNER’S TITLE INSURANCE PREMIUM |
$4,500
|
$450 per $100,000 of purchase price. Variable by transaction.
|
| MUNICIPAL SEARCHES |
$750 - $1,000
|
Title searches for taxes, c/o, liens, judgments, etc.
|
| BUILDING APPLICATION FEE |
$250 - $700
|
Varies by building.
|
| BUILDING CREDIT CHECK |
$75 - $125
|
Varies by building.
|
| MOVE-IN FEE |
$250 - $1,000
|
Varies by building.
|
| MOVE-IN DEPOSIT |
$1,000 - $1,500
|
Usually refundable after closing/move-in.
|
MORTGAGE-RELATED CLOSING COSTS - BASED ON A $1,000,000 PURCHASE WITH 80% FINANCING
| COST TYPE | ESTIMATION | EXPLANATION |
|---|---|---|
| NYC MORTGAGE TAX |
$15,400
|
1.925% of loan amount minus $30 for mortgages $500,000 and higher; 1.8% of loan amount minus $30 for mortgages of less than $500,000.
|
| BANK ATTORNEY FEE |
$1,000 - $1,250
|
The bank is represented by an attorney and the cost is passed onto the borrower. Varies by bank.
|
| MORTGAGE ORIGINATION FEE |
$500 - $800 PLUS POINTS
|
Fee that goes to the mortgage broker or banker. Between 0 - 3%, negotiable. A point is 1% of the loan amount.
|
| MORTGAGE APPLICATION FEE |
$350 - $650
|
Charged by bank when purchaser applies for mortgage loan.
|
| PROCESSING FEE |
$330 - $500
|
Charged by bank and typically collected at closing.
|
| APPRAISAL FEE |
$500 - $2,000
|
Appraisal lets a lender know what the loan collateral will sell for in a worst-case scenario. No bank will lend without an appraisal. Fee is usually paid upfront and non-refundable.
|
| CREDIT REPORT FEE |
$20 - $50
|
Lender fee to check borrower’s credit.
|
| TAX ESCROW |
TWO TO SIX MONTHS OF YEARLY TAXES AND INSURANCE
|
The bank will establish an escrow account for future taxes and insurance. Borrowers will deposit about two to four months worth of taxes and insurance to hold asa cushion in case of future increases. The escrow balance will be returned to the borrower upon payoff of the loan.
|
| LENDER’S TITLE INSURANCE PREMIUM |
$930
|
Insures lender as first lien holder.
|
| HOMEOWNER’S INSURANCE |
$1,000 - $5,000 PER YEAR
|
Required by bank for condos, townhouses, and single/multi-family homes.
|
| CONTENTS INSURANCE |
$1,000 - $5,000 PER YEAR |
Required by bank for condos, townhouses, and single/multi-family homes. |
NON-MORTGAGE-RELATED EXPENSES - BASED ON A $1,000,000 CO-OP PURCHASE
| COST TYPE | ESTIMATION | EXPLANATION |
|---|---|---|
| REAL ESTATE BUYER BROKER FEE |
ALL COMMISSION IS NEGOTIABLE, TYPICALLY 3% OF PURCHASE PRICE
|
Can be a flat fee, negotiated through seller concessions, and bundled into the purchase offer.
|
| NY STATE MANSION TAX |
$10,000
|
For properties priced at $1,000,000 or more, tax rates range from 1% - 3.9%.
|
| ATTORNEY’S FEES |
$2,500 - $5,000
|
In New York, each party to a real estate transaction is required to be represented by an attorney.
|
| CO-OP BOARD APPLICATION FEE |
$300 - $500
|
Co-op management company typically charges a processing fee to review the board package before it is sent to the board.
|
| CO-OP CREDIT CHECK FEE |
$50 - $100
|
Co-op performs its own credit check.
|
| MOVE-IN FEE |
$250 - $1,000
|
Co-ops typically charge each buyer a fee and security deposit to move in.
|
| MOVE-IN DEPOSIT |
$1,000 - $1,500
|
Usually refundable after closing/move-in.
|
| TITLE SEARCH/LIEN SEARCH |
$350 - $500
|
Searches the names of sellers, buyers, and the subject premises for any liens or judgments.
|
MORTGAGE-RELATED CLOSING COSTS - BASED ON A $1,000,000 CO-OP PURCHASE WITH 80% FINANCING
| COST TYPE | ESTIMATION | EXPLANATION |
|---|---|---|
| MORTGAGE ORIGINATION FEE |
$500 - $800 PLUS POINTS
|
Fee that goes to the mortgage broker or banker. Between 0 - 3%, negotiable. A point is 1% of the loan amount.
|
| MORTGAGE APPLICATION FEE |
$350 - $650
|
Charged by bank when purchaser applies for mortgage loan.
|
| APPRAISAL FEE |
$500 - $2,000
|
Appraisal lets a lender know what the loan collateral will sell for in a worst-case scenario. No bank will lend without an appraisal. Fee is usually paid upfront and non-refundable.
|
| CREDIT REPORT FEE |
$20 - $50
|
Banks will charge this to obtain a credit report. The higher your credit score, the better mortgage rate you will receive.
|
| CO-OP QUESTIONNAIRE FEE |
$150
|
Banks require a questionnaire to be filled out by the co-op’s management company in order for the bank to approve the co-op for lending. Questions pertaining to the co-op include financials of the building, maintenance history, number of units, and max financing permitted.
|
| RECOGNITION AGREEMENT FEE |
$300 - $350
|
This agreement delineates the competing interests of the bank and co-op in the unit. Closing cannot take place until this is executed by the bank, the co-op, and the purchaser. This agreement requires the co-op to notify the bank if you sublease, fail to pay maintenance, or seek refinancing. The bank will keep the original stock certificate until the loan is paid off or apartment is sold.
|
| BANK ATTORNEY FEE |
$1,000 - $1,500
|
The bank is represented by an attorney.The bank passes this cost on to you, the borrower.
|
| UCC RECORDING FEE |
$100 - $150
|
The bank files a UCC-1 to secure its interest in the unit.
|
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