Explanation breaking down loan costs

[Steven Barr]

Hi BP - I am buying an investment property for $90,000 with 25% down. All of my costs are below. The closing costs seem VERY high. Is this a reasonable amount to assume paying?

Purchase price: 90,000

Borrower closing costs (including prepaid and intial escrow payments): 5,728.85

Discount Points: 675

Loan amount: 67,500

Other credits (borrower paid fees, earnest money, employer assisted housing, lease purchase fund, lot equity, relocation funds, sweat equity trade equity, other): 1,000

Total due from borrower: 96,403.85

Less other credits; 1,000

cash due: 27, 903.85

Looks like closing costs are $5,403.85 on a $67,500 loan. That's 8% fee! Am i misunderstanding something?

[Dave Skow]

@Steven Barr  - thanks -  1) subtract the  prepaid interest / taxes and interest from the total as these are not  " closing costs "  - these items are  being collected to  set up your impound account  and to pay for the  interest  for the  days  between closing and the end of the month ..  2) the remaining  amount  do  sound  normal for a  rental  purchase loan at  a 75%  ltv   3) it would be helpful to make mention of the interest  rate  you are  getting and also  what your credit score is  and  also  if the property  is a  single unit or  MF property  ( all these  things affect scores )