Sample Settlement Costs
Because costs may vary from one area to another and from one lender to another, the following example is an estimate only. This example is based on a $150,000 home with a 5% or a 20% down payment. Excluding reserves for property taxes and down payment, settlement costs for the 5% down payment loan vary between $4,690 and $13,940; settlement costs for the 20% down payment loan vary between $4,285 and $12,060. Your costs may be higher or lower than the examples below.
| Item | Typical range (percent except as noted) |
Estimate for $150,000 house (in dollars except as noted) |
|
|---|---|---|---|
| 5% down payment | 20% down payment | ||
| Down Payment | -- | 7,500 | 30,000 |
| Mortgage amount | -- | 142,500 | 120,000 |
|
Items payable in connection with the loan ("800" series on HUD-1 form) |
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| Application fee (may include credit report fees) | -- | 75 to 300 | 75 to 300 |
| Loan origination fee (may also include underwriting fees, administrative fees, lender's attourney fees, notary fees, and so on) | 1 to 1.5 of loan | 1,452 to 2,137 | 1,200 to 1,800 |
| Points | 0 to 3 | 0 to 4,500 | 0 to 3,600 |
| Appraisal fee | -- | 350 to 700 | 350 to 700 |
| Lender's inspection fee | -- | 175 to 350 | 175 to 350 |
| Assumption fee (if applicable) | $300 to $1,000 | -- | -- |
| Broker fee (if applicable) | May be a dollar amount or a percentage. | ||
|
Items payable in advance ("900" series on HUD-1 form) |
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| Prepaid interest | * | 350 | 295 |
| Homeowner's insurance (hazard insurance) | $500 to $700 |
525 These are the fees if using $3.50 per $1,000 of purchase price as an estimate. |
|
| Flood determination (flood insurance, if needed, is additional) | -- | 15 to 50 | 15 to 50 |
|
Reserves (escrow) deposited with lender ("1000" series on HUD-1 form) |
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| Homeowners insurance | -- | 250 to 350 | 250 to 350 |
| Private MI | -- | 125 to 250 | -- |
| Property taxes | Varies greatly and depends on local tax rates. | -- | -- |
|
Title charges ("1100" series on HUD-1 form) |
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| Title search and lender's title insurance | -- | 700 to 900 | 700 to 900 |
| Owner's title insurance | -- | -- | -- |
|
Government recording and transfer fees ("1200" series on HUD-1 form) |
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| Recording fees for deed, mortgage, city/county taxes, and state taxes | 0 to 1.5 of loan | 0 to 2,137 | 0 to 1,800 |
|
Additional charges ("1300" series on HUD-1 form) |
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| Survey | -- | 150 to 300 | 150 to 300 |
| Pest inspection | -- | 50 to 90 | 50 to 90 |
| Settlement fees | -- | 500 to 1,000 | 500 to 1,000 |
|
Other amounts due from borrower ("100" series on HUD-1 form) |
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| Personal property; assessments; prorated condominium fees; homeowners' association fees; prorated taxes; fuel, oil, and propane; and so forth |
These items vary depending on your agreement with the seller.
|
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Note: "--" = not applicable
*Depends on interest rate, the day of the month that settlement takes place, and the amount borrowed. The example assumes that there are 15 days left in the month and that the interest rate on the loan amount is 6%
Settlement Cost Tips
- Think about settlement fees before you submit your purchase offer.
- Remember many fees and charges are negotiable.
Use the Settlement Costs Worksheet and compare costs by shopping among several lenders and brokers.
This information has been prepared to help you make the important decisions involved in buying and financing your home. However it should not be viewed as a replacement for professional advice. Talk with attorneys, mortgage lenders, real estate agents, and other advisers for information about lending practices, mortgage instruments, and your own interests before you commit to a specific loan.
