Closing costs that are tied to your mortgage
Points (optional)
Each point is equal to 1 percent of the amount you borrow and very loan to loan. The more points you pay up front, the lower the interest rate. A good rule of thumb I use is 1 point is equal to 1/8 of a percent on the loan. i.e. : no pints = 4.00%, by paying 2 points 2 x .125 = .25 gives you a 3.75% loan.
Appraisal Fee
Appraisals vary on many factors such as size of home, amount of land and more. The fee for a typical 3 bedroom, 2 bath home 1,500 SF on a city lot of average quality $500 to $800.
Credit Report
$30 to $60 depending on your lender.
Interest Payment
Home loans are paid in arrears, this means one month behind. When you purchase a home and it closes on any other date than the first of the month, you will owe prepaid interest to the first of the month for your specific loan. i.e. you close on the 15th of the month and the amount of interest you owe on your loan each month is $$2,400: 2,400/30 = 80×15 = $1,200. The first mortgage payment is due 45 days after close.
Escrow Account Fee
This is fee charged by the title company and varies almost always by the price you pay for the home. They do vary a very small by the title company you use, the rates are set by the State of California. i.e.: For a $465,000 in the City of Napa which close 11/12, the fee was $1,100.
Taxes you may be responsible for at closing
Property Taxes
Property taxes rates in Napa County range from 1.07 to 1.35+ percent with average approximately 1.15. Property taxes are paid twice a year due Decemeber 1oth and February 10th. Thus it depends on when you close escrow whether you will owe any or receive a credit.
Transfer Taxes and Recording Fees
Napa County: transfer tax fees is $1.10 per $1,000 of sales price.
City & town: there are no transfer tax fees.
Recording fees vary based on the complexity of the transaction. The fee for a typical 3 bedroom, 2 bath home 1,500 SF on a city lot of average quality range run $100 to $200.
Insurance fees due at closing
Homeowner’s Insurance
Homeowner’s insurance is paid one year in advance at close of escrow and vary upon size and quality of the home and amount of coverage you want. The rate for a typical 3 bedroom, 2 bath home 1,500 SF on a city lot of average quality range from $600 to $800 per year.
Flood or Quake Insurance (optional)
Flood insurance rates are obtained from the Federal Emergency Management Agency (FEMA) and vary greater on many factors including flood zones, elevations and more. Rates can be range from a few hundreds to several thousand.
Private Mortgage Insurance (PMI) (optional)
This is an insurance required by lenders when you borrow more than 80% of the purchase price. The fee varies depending on loan to value ratios (LTV), credit score and more. A typical monthly payment range for this insurance is .4 to 1 percent of the amount you borrow divided by 12. i.e you borrow $100,000 x .75 = $750/12 = $62.50 per month.
Title Insurance
Title insurance varies by the purchase price and the different overages you would like to purchase. It is and insurance which guarantees you receive clear & free title to the property you are buying. They do vary a very small by the title company you use, the rates are set by the State of California. i.e.: For a $465,000 in the City of Napa which close 11/12, the fee was $1,806 for a standard policy.
Inspections (the most common), generally paid by the buyer in Napa County
Not the following costs are from 8/12 and generally change the first of every year. I will update these in the next few months. The costs quoted here are for a 2,000 SF single family on a city lot. The ones for well & septic are for a country property and the survey is for a 10 acre lot which is accessible for the surveyor and doesn’t have complications. Also, the fee here is for an inspection paid for at the time of inspection and not billed through escrow which costs approximately $50 more.
Home $425 + $100 for a guest unit
Roof $125
Termite $300 + $100 for a guest unit
Chimney $145 per fireplace inserts $30 more
Electrical $250
Trees $125/hr + $50-75 for a written report
Pool & spa (if present) $195 pool + $75 spa
Well (if present) $450 – $800 2 hr test $650 – $1,200 4 hr test
Water quality testing $45 fecal $200 – $400 for complete tests
Septic (if present) $500 + $100 if tank needs pumped at time of inspsetion
Survey $2,000 – $4,000 this is a very rough estimate and depends on many factors
