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Zhi Finance » What are the mortgage transaction fees?

What are the mortgage transaction fees?

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When you buy a house or refinance a mortgage, you have to pay a variety of miscellaneous fees. Even if the seller pays for you, you have to know what the costs are.

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Some expenses are related to mortgage, while others are related to buying and selling houses.

Mortgage related expenses

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Appraisal fee: The appraisal fee is subject to the market. The appraisal fee for a house is generally about 300 dollars.

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Credit report: The fee varies, generally within 50 dollars.

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Lender’s ownership insurance: This insurance protects the interests of the lender when there is a problem with your house ownership. In most cases, the fee is about 1% of the mortgage amount, that is, the insurance premium for a $100000 mortgage is $1000.

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Registration fee: This fee is negotiable, about 1%.

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Guarantee fee: This fee can be exempted, and it can be negotiated within 750 dollars.

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Document preparation fee: less than $150, negotiable.

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Tax service fee: used to verify the tax status of the property, usually about $60.

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Flood detection fee: when the property is in the flood fighting area, it is used to confirm whether flood insurance is required, about 15 dollars.

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In addition to the above transaction fees (the above list is not exhaustive – there may be other fees), if your first repayment date is on the first day of the following month, you may also have to pay interest on the remaining days of the transaction month. If the lender asks you to pay the property tax with your mortgage, you may have to pay part of the property tax. Finally, if the loan company levies taxes on you, it will also levy real estate insurance premiums. In addition to the insurance premiums this year, it will also require you to pay a part of the insurance premiums for the next year.

Expenses related to house purchase

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In addition to the above expenses, there are also expenses related to buying a house (if you buy a house with cash, the above expenses can be avoided, otherwise you have to pay mortgage related expenses as well as house related expenses):

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Transaction fee: It may cost $100 to $150 to the company that handles the property transfer. (The fees paid by both parties are equal.)

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Transfer fee: The fund custodian company transfers the purchase price to the seller, which may pay 10 to 25 dollars.

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FEDERAL EXPRESS FEE: It may cost $15 to $35 to pay for documents between the buyer and the seller.

Expenses related to house selling

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If you are a seller, you may need to pay the following transaction fees.

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Real estate agent commission: The commission is paid to the agent agent for house purchase, which is about 6% to 7% of the house purchase price. This commission can be negotiated.

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Transaction fee: It may cost $100 to $150 to the company that handles the property transfer.

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Buyer’s property right insurance: it is used to protect the buyer by insuring the property right defects that you do not know in advance. The insured amount is less than 1% of the sales price of the house ($1000 property insurance is paid for every $100000 sales price).

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FEDERAL EXPRESS FEE: It may cost $15 to $35 to pay for documents between the buyer and the seller.

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Through the agreement, the seller usually needs to pay transaction fees for the buyer. Sellers tend to raise house prices, forcing buyers to increase the amount of mortgage loans.

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As you can see, the real estate transaction costs are numerous and miscellaneous, and the transaction costs of the buyer can easily exceed 2% of the purchase price (including mortgage related costs). The seller pays more, including commissions. Buying and selling new houses often cost 10% of the house price. Don’t assume that you have made money, in fact, the gain is not worth the loss.