ESTIMATING CLOSING COSTS

Estimated closing costs in Massachusetts


EXAMPLE: Purchase Price of $500,000.00 with 10% financing

{estimated}

BUYER:

Appraisal
$ 250.00-350.00
Credit Report
$ 20.00-50.00
Tax Service Fees
$ 15.00-40.00
Flood Certification
$ 20.00-30.00
Municipal Lien Certificate
$ 25.00-50.00
Plot Plan
$ 125.00-175.00
Recording Fees
$ 365.00-550.00
Bank Attorney Fees
$ 500.00-800.00
Title Insurance
$ 1125.00 {optional Owner's policy add $1,590.00}
Overnight Mail Fees
$ 25.00- 50.00

*Lenders also charge miscellaneous underwriting, loan processing, document preparation and funding fees which may add several hundred dollars to the estimate.

When shopping Lenders compare these discretionary fees as the items listed above

are more standardized in the industry.

**Buyers may also opt to "buy down" their interest rates by paying points to the Lender.

A point = 1% of the loan amount. In this example one point = $4,500.00

***Personal representation by an attorney is paid separately by the Buyer at closing. When interviewing a personal attorney a Buyer will be quoted a fee for negotiation of the Purchase & Sale Agreementwhich includes counsel throughout the process and attendance at closing. If a condominium is involved, a Buyer's attorney will also review the condominium documents and financial statements with the Buyer during the Purchase & Sale stage. In many cases the Buyer's Lender will allow the Buyer's attorney to be appointed as Bank counsel as well which often results in reduced fees to the Buyer. Buyers should never presume that the Bank attorney represents their personal interests unless he or she is specifically hired separately for that purpose.

SELLER:

Excise Stamp Tax (transfer tax):
$4.56 per thousand. In this example: $2,280.00
{This fee is paid to the Commonwealth of Massachusetts through the Registry of Deeds.}
Recording Fees:
$75.00 per mortgage discharge or any other title clearance document
Courier/Overnight Fees:
$25.00-50.00
Wire Fees (if applicable):
$25.00-50.00
Realtor's commission
generally 5% of the sales price
Attorney's Fees:
Usually hourly but negotiated with individual counselaverages $750.00-$1,000.00 unless title clearance is necessary which can significantly raise this estimate
Obtaining Mortgage Discharges:
$50.00-$100.00 per discharge

Both parties should expect to have taxes, municipal fees for water, sewer, monthly condominium fees, homeowner's association fees and fuel use charges to be pro-rated and adjusted at closing as well.
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