Residential Closing Costs

Mortgage Closing Costs Facts from an Experienced Lawyer

If you are ready to buy or sell a house, there are some straight facts you need to know about mortgage closing costs. I am real estate attorney Robert Russo. Upon graduating from Fordham Law School, I founded my law practice, Robert D. Russo, Attorney at Law, in Southport, Connecticut. I talk with people everyday who were unprepared for excessive mortgage closing costs. The information on this page is intended to explain where your title insurance and other mortgage closing costs go. This is only a brief overview of the closing process, and is not intended to serve as legal advice. Please contact my office to discuss all of your residential real estate needs. We will fully discuss mortgage closing costs during an initial consultation.

SALE OF $250,000.00 HOME

FUNDS RECEIVED

Binder Deposit (1%) $2,500.00
Contract Deposit (10%) $22,500.00
From Buyer at Closing $225,000.00
Will the Buyer owe you for property taxes you have already paid?* $501.03
Is there oil in the tank the Buyer needs to reimburse you for?** $160.00
If you're selling a condo, will the Buyer need to reimburse you for any fees you've prepaid?

TOTAL RECEIVED: $250,661.03

*$3,207.80/yr., credit to seller 5/5/07-6/30/07
**57 days @ $8.79 a day

FUNDS DISBURSED

Sellers Current Mortgage Payoff $175,000.00
State Conveyance Tax (1/2 percent): $1,250.00
Town Conveyance Tax (1/4 percent or more): $626.00
Robert D. Russo, Attorney at Law: $900.00
includes:
Recording Fees ($48)
Overnight Packages and Long Distance Phone calls ($75)
Seller's Real Estate Agent: $6,250.00
Buyer's Real Estate Agent: $6,250.00
Water Company $80.00
Unpaid Property Taxes?
Unpaid Sewer Usage Fees?

Reimbursement to Seller $60,305.03

TOTAL DISBURSED: $250,661.03

PURCHASE OF $500,000.00 HOME

FUNDS OWED

Before Closing

Binder Deposit (1%) $5,000.00
Contract Deposit (10%) $45,000.00

At Closing

Balance of Purchase Price: $450,000.00
Will you owe the Seller for property taxes already paid?* $813.39
Is there oil in the tank the Seller will need to be reimbursed for?** $160.00
Fire District? $0.00
Prepaid Condominium Fee? $0.00

TOTAL COST: $500,973.39

*$5,207.80/yr., credit to seller 5/5/07-6/30/07 57 days @ $14.27 a day
**(64 gallons @ $2.50)

FUNDS RECEIVED

From Mortgage Company at Closing (80%): $400,000.00
From Home Sale: $60,305.03
Due from Client at Closing: $48,412.33

TOTAL RECEIVED: $508,717.36

FUNDS DISBURSED

To Seller: $500,973.39

Mortgage Closing Costs:

Appraisal Fee (POC) $300.00
Application Fee to the Broker (POC) $179.00
Commitment Fee to the Bank $568.00
Lender Administration Fee $795.00
2nd Loan? (~$500)
sub-total: $1,842.00

Items Paid in Advance and Held in Reserve

Interest (30 days at $65.75 a day) $1,972.50
Hazard Insurance (3 months at $85.17 a month) $255.51
Property Taxes (2 months at $479.48 a month) $958.96
sub-total: $3,186.97

Title Insurance: $1,815.00

Robert D. Russo, Attorney at Law: $900.00
includes:
Recording Fees ($48)
Overnight Packages and Long Distance Phone calls ($75)

TOTAL DISBURSED: $508,717.36

Note about Refinancing:

Many people who are refinancing their current home don’t take into account the high mortgage closing costs that are factored into the refinanced loan. I can help you understand refinancing law and how insurance and other closing costs may affect your second mortgage.

For information about your specific mortgage closing cost issues, contact my office in Southport, Connecticut, to schedule a consultation. Get the facts from an experienced lawyer before you sign the papers.


Robert D. Russo, Attorney at Law
2507 Post Road, First Floor
Southport, Connecticut 06890
telephone: (203) 254-7579
facsimile: (203) 576-6626

Robert D. Russo, Attorney at Law, provides legal advice and representation for residents and business owners in communities throughout Fairfield County, Connecticut, including cities such as Fairfield, Westport, Norwalk, Bridgeport, Wilton, Weston, Easton, Trumbull, Monroe, Stratford, and Shelton.