There are two types of costs or expenses in an escrow: recurring costs and non-recurring costs.
RECURRING COSTS
Costs which the party pays at closing but will continue to occur or be repeated after the escrow closes as a cost of maintaining the property such as:
- Interest on the New Loan
- Real Property Taxes
- Homeowners’s Association Dues
- Fire Insurance Premium
NON-RECURRING COSTS
Costs which are charged ONE TIME ONLY as an expense of closing the transaction. Such as:
- Escrow Fees
- Notary Fees
- Messenger Fees
- Title Company Expense such as Title Insurance Premium, Endorsements to titles Polices, Sub-Escrow Fee which may be due to Title Company, Re-conveyance Fees, Documentary Transfer Tax.
- Transfer or Document Fees to a Homeowner’s Association
- In the case of a sale, Expenses such as Real Estate Broker Commissions, Fees For Property Disclosures or City Reports, Transaction Coordinator Fee, Home Warranty Premium.
- Lender’s Cost such as, Appraisal, Credit Report, Loan Origination, Loan Processing, Documents Fees, Tax Service Contract.
Here is a sample of closing costs estimate for a Buyer who purchased a house for $1,315,000 with $715,000 mortgage. Total closing costs is about $10,000
Shirin Rezania Ramos | 858-345-0685 | www.DelMarValley.com | Lic. 02033796 | Compass
