Closing Costs for East end of Long Island Real Estate

November 27th, 2011 category: Real Estate News

11_27_11PicNik Closing cost estimate of expenses for home buyers of East end (Hamptons, North fork) real estate:

As related to your mortgage, the following are estimated buyer closing costs:

Origination fee- varies by lender, but is typically 1% of the loan amount

Points- depending on the interest rate desired, a point is equal to 1% of the mortgage amount. While it’s possible to get a “par” (0 points) rate, your lender will disclose fees attached to the rate quoted.

Private Mortgage Insurance (PMI)- for loans with less that 20% down, PMI is required by many lenders. Your lender will provide the cost specific to your purchase.

Homeowners Insurance- also a monthly fee, lenders will require that the first year premium be paid up front.
Your lender will also provide you with any miscellaneous fees required when they work up your good faith estimate.
Because of the costs associated with your loan that are in addition to your down payment, it’s always wise to meet with your lender before seeking a property to buy.

Additional buyer closing costs in New York :

Title Insurance- the amount of this expense will depend on the price point of the property. A handy calculator can be found here.

Mansion Tax: When your purchase includes a property with a cost in excess of $999,999, there is an additional tax of 1% of the purchase price.

Peconic Land Trust Tax: on the East end of Long island (Hamptons, North fork), there is a 2% transfer tax required. In some areas the first $150,000 is exempt; in other areas the first $250,000 is exempt.
Details can be found here.

Attorneys fees must also be added- these vary. The above is a guide for estimating- your lender and attorney will be able to provide you with figures as they relate to your specific purchase, and will identify their fees.
In the event that a survey is required for your purchase, plan on an additional $550-$900.
There will be a mortgage recording tax required for your purchase.

For sellers, the list is shorter.

In addition to real estate broker fees (if any), home sellers on the East end will have the following expenses:

Transfer tax: in Suffolk county, the tax is $2.00 per every $500.00 of the purchase price.

Recording fees: you will be filing a satisfaction of mortgage- see above.

Attorney fees- vary.

The above is a guide to assist in calculating rough costs- your title company/attorneys will provide figures specific to your purchase/selling price.

This entry was posted on Sunday, November 27th, 2011 at 8:05 pm and is filed under Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Quick Search

Links