Fee Comparison for Conventional Mortgage vs. Cash
Hello, I'm about to purchase my first investment rental property. I received a preapproval for a $68.8K loan on an $86K purchase. I'm planning to refinance in 6 months to pull out some of the ARV equity after some rehab. I'm wondering what the savings would be if I pay cash vs. do a conventional mortgage for the initial six months. Can someone tell me which of the below fees I would still need to pay if I buy the house cash? Also, could you tell me which fees if I paid for the initial six month mortgage I would not have to repay again for the refinance?
| Fee | Amount |
| Loan Origination Fee | $895 |
| Appraisal | $465 |
| Credit Report | $35 |
| Flood Certification | $12 |
| Title - Abstract or Title Search | $85 |
| Title - Title Update and Recording | $35 |
| Title - Record/Release/Confirm | $100 |
| Title - Deed Preparation | $150 |
| Title - Courier Fee | $70 |
| Title - Title Binder | $40 |
| Title - Settlement Agent Fee | $450 |
| Title - Lender's Title Policy | $494 |
| Title - CPL Fee | $20 |
| Recording Fee - Deed | $100 |
| City/County Deed/Mortgage Tax/Stamp Fee | $130 |
| State Deed/Mortgage Tax/Stamp Fee | $395 |
| Interest for 15 Days | $145 |
| Hazard Insurance | $720 |
| Hazard Insurance | $180 |
| Property Taxes | $178 |
| Total | $4,699 |
Another question is for the title fees. I was planning to use my own attorney for the title and closing, so I wasn't sure if this fee structure is based on me using the mortgage provider to do the title or if it would be in addition to what I pay my closing attorney.
One reason for not automatically paying cash is that it will use up the cash I have available to buy a second property.
Thank you for your time.
Ernie