| How much does a typical closing cost for the buyer?
Usually between $700.00 and $800.00 for the legal fees.
You'll also pay for a plot plan (about $125.00), title insurance ($400.00
and up, depending on the amount of the mortgage), Massachusetts or New Hampshire
recording fees (about $400.00), tax stamps (see below), and all of the bank
or mortgage company charges.
What are tax stamps and who pays them?
Tax stamps (also known as excise taxes or registry stamps)
are paid only on purchases, not on refinances. They differ according to
state:
Massachusetts: $4.56 per $1,000 of purchase price (for
example, $456.00 for a $100,000.00 purchase), always paid by the seller.
New Hampshire: $15.00 per $1,000 of purchase price (for
example, $1,500.00 for a $100,000.00 purchase), always divided equally between
the the seller and the buyer.
How about a refinance?
Overall fees are less -- the legal fee is commonly no more
than $450.00, title insurance is usually less as well, recording fees are
about $250.00, and there are no tax stamps.
What is title insurance?
Title insurance is a form of insurance that promises to
pay if the title to your real estate is not marketable. You pay for it once,
at the closing. "Lender's" title insurance is for the amount of
the mortgage, and pays the bank or mortgage holder. It is required by virtually
all lenders. "Owner's" title insurance is for the value of the
property above the mortgage, representing your equity in the real estate.
It pays you, and is optional. Note, however, that title insurance does NOT
pay anything unless they have finally determined that your title cannot
be corrected. Most titles can be corrected and the title insurance company
will pay the cost of correcting them -- but the process of correcting a
title often takes months or years. Meanwhile, you as the owner will have
little choice but to wait for the process to be completed.
Can I choose my own attorney for a closing?
Yes, if your bank or mortgage company allows you. Frequently
they do not, and instead select one for you. You will still pay the fees.
What banks does Watson & Watson close for?
We close for locally owned banks only, and recommend using
local banks to all our clients for all their needs. Simply, the service
is far better and the rates are just as good. Two excellent local banks
are The Institution for Savings in Newburyport and The
Newburyport Five Cents Savings Bank.
Do I need an attorney forselling a house?
It is a good idea, but usually only for two limited purposes:
to review the Purchase and Sale Agreement, and to prepare the deed. The
total cost should be no more than $250.00, unless disputes arise.
|
