Closing Costs of a $500K House
Let's say you're purchasing a house for $500,000 and the lender charges the following fees:
| Fee | Cost |
|---|---|
| Application fee | $500 |
| Origination fee | $2,500 |
| Discount points | $4,000 |
| Underwriting fee | $1,000 |
| Processing fee | $500 |
| Appraisal fee | $400 |
| Credit report fee | $50 |
| Tax service fee | $100 |
| Flood certification fee | $50 |
| Wire transfer fee | $50 |
Additionally, let's say the title company charges the following fees:
| Fee | Cost |
|---|---|
| Title search fee | $400 |
| Title insurance fee | $1,000 |
| Closing fee | $500 |
Finally, the government charges the following fees:
| Fee | Cost |
|---|---|
| Recording fee | $150 |
| Transfer tax | $2,500 |
To calculate the total closing cost, you would add up all of the fees:
$500 + $2,500 + $4,000 + $1,000 + $500 + $400 + $50 + $100 + $50 + $400 + $1,000 + $500 + $150 + $2,500 = $13,650
So the total closing cost for this house purchase would be $13,650. Of course, these numbers are just an example and the actual closing costs can vary depending on various factors, as mentioned in the text.
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