NJ Refinance Closing Cost

NJ Refinance Closing Cost

NJ Refinance Closing Costs - NJ Refinance Closing Cost

What we've done is break down NJ Refinance Closing Cost

 closing cost into three categories.

1. Bank Fees

These are fees that lenders are allowed to charge such as discount fee, commitment fee, processing fee, credit report fee, application fee and any other fee the bank or mortgage company may charge. These fees may be negotiable. If you don't want to pay any one of these fees request that the mortgage lender waive that fee. Lenders can and do waive fees.

2. Third Party Fees

These are fees that are paid to companies that provide a service such as title insurnance fee, recording of mortgage and deed. These fees are regulated by the NJ Insurance Department and should not vary from company to company. Fees like survey fee, appraisal fee and closing agent may vary but should not vary by alot. In New Jersey you do not need an attorney to refinance. A closing agent from the title company will handle the closing.

3. Escrows

Since property taxes and property insurance vary with each property we will give you a general idea of how escrows work. As a rule of thumb mortgage escrows may be up to 5 months for property taxes and  up to 3 months hazard insurance may be escrowed. Normally the escrow account is set up by the lender and these fees should not vary by much.

If you choose not to escrow a fee may be charged. Normally it will be .25%

From past experience a $200,000.00 loan amount closing cost should be around $2,400.00 plus escrows.

Closing cost - FHA allows the seller to pay up to 6% of your closing cost.

If you are buying a $100,000.00 house FHA allows the seller to pay up to $6,000.00 for your closing cost. It must be in writing in the sales contract, "Seller will pay up to 6% of buyer's closing cost."

If you do not write it into the sales contract then you will be paying the closing cost. In the state of Florida closing cost for a $100,000.00 house average around $4,800.00 depending on taxes, insurance and who's paying the transfer tax and owner's title insurance.

By allowing the seller to pay for your closing cost you will decrease the amount of money required to buy a home. Buying a $100,000.00 property requires $3,500.00 down payment and if the seller pays up to $6,000.00 for your closing cost you will only need around $4,000.00 to buy a $100,000.00.

Are you a first time home buyer? Do you need to get pre-approved for a first time home buyer program? Apply now!

www.MORTGAGE-WORLD.com LLC is an online mortgage company specializing in FHA loans for first time home buyers.