I would appreciate your advice about the correct numbers to use when estimating closing costs while running the numbers for our next purchase.
This is an example of the closing costs for a rental that we purchased for $105,000.
Loan Charges: Origination & prepaid interest: $1,000
Title Charges & Escrow/Settelment: $1,600
Impound Charges: Tax & Insurance: $1,500
Which of the charges should be entered into the closing cost field? Is there anything else I should consider?
I’d appreciate your input.
It sounds like since you're looking at an existing purchase and trying to estimate closing costs for the next purchase - they will be similar?
Your origination/prepaid interest/loan points may change if you're getting a different loan or interest rate.
The title/escrow charges should be relatively the same if you're buying a similar property through the same escrow company.
How much is taken for your initial escrow/impound account will depend on how much the insurance and the property tax bill is. I typically don't include this in my closing costs, when calculating it, however, since these are not real expenses - you will get this money back eventually.
You may want to add a property inspection fee and an appraisal fee to your total.
Thanks for your help Anton. Your reply was very helpful.
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