Real Estate Investors - Don't Close Your Eyes To Closing Costs.
When buying or selling real estate closing costs can come as
a shock. Here's an explanation of the various expenses:
Down Payment
Most lenders require a down payment of from zero to 20% for
a normal home purchase.
Lender's Loan Origination Fee
Government regulations allow 1% origination fee on FHA or VA
loans. Conventional loan fees can vary from 1 to 3 points or
more. A point is 1% of the loan.
Appraisal Fee
About $300-$500. Non refundable.
Credit Report
$50-$60.
Non refundable.
Tax Service Fee
In some areas a charge of approximately $75 by a tax service
company to verify to lender that taxes are actually being
paid.
Assumption Fee
Fee of approximately $250 up to 1% of the loan balance charged
by existing lender for permission to assume existing loan.
Pest Inspection Fee
A fee of $100 - $175 is charged for inspecting property for
wood destroying organisms (termites). Customary for the seller
to pay.
Optional Fees
At buyer's option: property inspections that cover foundation,
electrical, plumbing and overall construction at a cost of
$300-$400. Roof inspections cost $75-$125. Geological reports
about $100.
Septic $200-$400. Radon $50-$100. Asbestos
$75-$125.
Title Insurance
Cost determined by a rate chart and is based on the loan
amount.
City Transfer Tax
Imposed within the corporate limits of some cities.
The VA does not allow the veteran buyer to pay any portion of
this cost.
Miscellaneous Costs & Fees
$150 should cover notary, recording documents, endorsements, etc.
Hazard/Fire Insurance Reserve
Two month's premium is usually collected for the impound account
if required. Paid by buyer.
Prepaid Interest
Interest must be paid from close of escrow to 30 days prior to
the first regular mortgage payment.
Mortgage Insurance
Required on all conventional loans greater than 80%.
Cost ranges from about 1/2% to 1% per year.
14 months premium is
collected in advance. For benefit of lender in case of default.
Tax Impounds
When new loan is going to have an impound account, lender will
require from 2-10 months taxes be deposited in impound account.
If taxes are prorated, buyer's total charge for taxes should
equal about six month's taxes.
Escrow Fee
$750-$2500, depending on the sales price. Can be paid by buyer,
seller or split.
Everything is negotiable.
We have listed examples for typical closing cost.
Closing
procedures and costs vary from area to area.
Your real estate agent and loan agent can provide estimated
closing costs.
Don't neglect to add them to all the other
costs of buying real estate when determining the affordability
of a property.
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Medical Insurance Protection During Spring Break
With the large number of college students and others traveling away from home this coming week for spring break vacations, it pays to take a minute to think about the protection you have in the event of an accident or illness.
Tony Novak, who operates OnlineAdviser service at MedSave.com, offers these suggestions:U.S. health insurance policies typically cover only U.S. residents while in the U.S.
Non-U.S.
health insurance policies cover only non-U.S. residents while outside the U.S.
International travelers usually need supplemental insurance to bridge the gap during periods away from home.If you belong to an HMO, realize that your benefits out of your local area are limited and you may wind up paying most of the cost of a claim yourself.
The out-of-network deductible and co-insurance typically leave your financial exposure greater than most people are willing or able to pay.
The co-insurance for an out-of-network claim may be as much...
Auto insurance > Medical Insurance Protection During Spring Break
Health Cares
Minneapolis, MN (ContentDesk) October 22, 2005 Insurance shopping in the twenty-first century is a unique challenge.
More and more companies are hiring without benefits, so what options are available to those not covered by their employers?A February article in Health Affairs notes a Harvard study indicating that medical bills are the leading cause of bankruptcy.
It goes without saying that health care coverage is only effective if it is acquired before an accident, illness or pregnancy occurs.The sad truth is consumers have no legal right to health coverage.
After a job loss, employees may not necessarily able to keep their coverage or get same coverage at same price.
COBRA (Consolidated Omnibus Reconciliation Act) is an extension of benefits available for a short time after job termination, but not a long-term solution for coverage.Basically, there are two types of plans: individual or group.
An individual plan, not underwritten by a...
Health Cares
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FACT Provides Immediate Disaster Relief to Members in Aftermath of Hurricane Katrina
WASHINGTON, D.C. (ContentDesk) September 2, 2005 -- The Federation of American Consumers and Travelers (FACT) provides immediate disaster relief to members who have been adversely affected by Hurricane Katrina. Current FACT members are reminded to call 1-800-USA-FACT to request the Disaster Aid assistance.
FACT is an association of consumers, formed under the not-for-profit corporation laws of the District of Columbia in 1984. The association currently represents some 1,000,000 consumers nationwide.Through a special arrangement with the Council for Disaster Assistance (CDA), FACT provides up to $250 in immediate payments for those who are affected by a natural or terrorist disaster.
FACT's goal is to help its members get through those first few crucial days following a hurricane, tornado, flood, fire or other disastrous event when, all too often, no other source of help can be found.
In order to facilitate an immediate payment, FACT forgoes the normal claim...
Auto insurance > FACT Provides Immediate Disaster Relief to Members in Aftermath of Hurricane Katrina
Inflexible friends and plastic assets, why money isn?t buying love anymore
It would appear that even though their "friends" aren't as flexible as they used to be, consumers are still stretching their credit cards beyond the comfort zone.The vicious circle of debt manipulation involving banks, consumers and commercial credit companies is putting consumer spending under strain, as funds begin to dry up. In May 2005, the Financial Times reported the accusation that banks were fuelling Britain's personal debt problem by repeatedly offering debt-ridden customers loans they were unable to repay.As the UK's personal debt increases by ?1 million every four minutes, credit card spending habits still seem to be spiralling out of control. According to Credit Action, nearly 66% of the adult population have a credit card, with multiple card holding becoming a growing phenomenon in the UK. More than 60% of card holders possess at least two cards, with 10% holding at least five cards. There has also been a significant rise in the number of personal bankruptcies.
In...
Inflexible friends and plastic assets, why money isn?t buying love anymore
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