The general rule of thumb is that buyers will pay between 5% - 8% of their mortgaged amount (loan) in closing costs. Again, this is a general approximation, but will give the buyer an indication of how much money he or she will need to close the deal (over and above the downpayment). The following is a detailed list of expected closing cost items that may occur for the Buyer. Any items in the list which are tax deductible, are duly noted.

• Appraisal Fee - When the buyer obtains a mortgage, the lender usually requires an appraisal, which the buyer pays for. A typical appraisal fee can run $ 250 - $ 400.

• Mortgage Tax - New York State imposes a tax of $ 0.75 for each $ 100 or fraction thereof for every mortgage recorded within the state, and in many counties there is an additional $ 0.25 for each $ 100 or fraction thereof. The first $ 10,000 of a mortgage for any one or two-family residence is taxed lower, at a rate of $ 0.50 for each $ 100. So, for a typical $ 100,000 mortgage, the borrower (buyer) would pay (0.50 * (10,000/100)) + (0.75 * (90,000/100)) = $ 725. [Although not deductible, Mortgage tax can be added to the cost basis of your home, which effectively makes it deductible when you eventually sell your home].

• Attorney Fees - The seller will pay his/her attorney a fee for representation. A typical attorney's fee usually is in the range of $ 600 - $ 1,000. Additionally, the borrower may be responsible for paying for the lender's attorney. This could run the purchaser another $ 500.

• Recording Fees - Charges for recording documents vary. Sometimes a small, flat fee is charged; other times it is a small, flat fee plus a charge per page. Buyers are typically charged recording fees for recording the deed and recording any new mortgage.

• Title Insurance - Typically, the buyer pays for this. A title insurance policy protects the policyholder against loss if a defect in the owner's (seller's) title is challenged by anyone at any yime. The policy is paid for only once and is in force for the whole period of ownership. Title insurance is obligatory if you require a mortgage, since all mortgage lenders require such protection for an amount equal to the loan. Title Insurance costs are in the range of 0.5% to 1.0% of the mortgage amount, as a one-time premium.

• Mortgage or Loan Origination Fee - When the purchaser is securing a mortgage to finance the purchase, the lender (mortgage company) usually charges a service charge or an origination fee. The fee is usually 1 % of your loan amount, and covers the costs associated with creating, processing, and closing the mortgage. Sometimes referred to as Document Preparation Fees.

• Points - Points, sometimes referred to as Discount Points, are different than origination fees. When shopping for a loan, you have many options when deciding to pay points. A point is calculated as 1% percent of the loan amount. Although points are a part of your closing closts, they are not considered loan fees. They are an optional way to buy the interest rate up or down. Typically, to save 0.25% off your loan rate, you would need to pay 1 point (i.e., 1% of your loan) at closing. 3 points would analogously save you 0.75% of your loan rate. This formula is not definitive, but can be used as a guide. Breakeven analysis needs to be performed, to determine the optimal number of points and the associated loan rate that you should decide upon. [Points are tax deductible in the year they are paid].

• Tax/Insurance Reserve (Escrow) - The mortgage lender usually requires that the borrower establish and maintain a reserve so that there will be sufficient funds to pay property taxes and renew hazard insurance, when these items become due. To set up this reserve, the borrower makes a lump-sum payment to the lender when the mortgage money is paid out at closing. Typically, 6 months of reserve are in escrow. [Any property tax payments made to the Escrow account are tax deductible in the year that they are made by the lender to your local taxing authority].

• Additional Fees - An FHA borrower owes a mup-sum for prepayment of the Mortgage Insurance Premium (MIP), if it is not being financed as part of the loan. Similarly, a VA mortgagor pays a fee directly to the VA at closing. Analogously, if a conventional loan carries Private Mortgage Insurance (PMI), the buyer prepays one year's insurance premium at closing.

• Credit Report Fee - This fee covers the cost of obtaining a credit report, which shows how you have handled other credit transactions. The lender uses this report in conjunction with information you submitted with your Q-form regarding your income, outstanding bills, and income to determine whether you are an acceptable credit risk, how much the lender can loan you, and at what interest rate.

• Survey Fees - A purchaser who obtains new mortgage financing customarily pays the survey fees. A survey can cost around $ 500.

• Proration - Most closings involve the dividing of financial responsibility between the buyer and the seller for items such as loan interest on an assumed mortgage, taxes, rents, fuel oil, and utility bills. For example, the seller may have prepaid his property tax bill for the entire year, and thus, a sale in mid-year, would entitle him to a prorated credit, that the buyer would have to pay.

• Lender Inspection Fee - This covers inspections by the lender or outside inspector of your house/ property. Most often associated with new construction.

• Flood Certificate - A lender may require a flood certificate to determine if the property is in a flood zone. Typically, this certificate costs around $ 20.

• Pest Inspection - A lender may require the buyer to have a pest (e.g., termite) inspection, before a loan is granted. A typical inspection might cost $ 100.

• Engineer Inspection - Optionally, a buyer may elect to hire an Engineer to inspect the house for things such as structural integrity, the electrical system, the heating system, etc. An engineer inspection may cost around $ 500.

Closing costs for the seller are significantly less (and fewer) than that of the buyer. The following is a detailed list of expected closing clost items that may occur for the Seller. Again, any items in the list which are tax deductible, are duly noted.

• Broker Commission - This is typically paid by the seller when the broker is the seller's agent. When the buyer has employed the broker, either party may pay the commission, according to agreement.

• Attorney Fee - The seller will pay his/her attorney a fee for representation. A typical attorney's fee usually is in the range of $ 600 - $ 1,000.

• Recording Fees - Charges for recording documents vary. Sometimes a small, flat fee is charged; other times it is a small, flat fee plus a charge per page. The seller usually pays recording fees needed to clear all defects and furnish the purchaser with clear title. Additionally, items usually charged to the seller include the recording of satisfaction of mortgages, quitclaim deeds, affidavits, and satisfaction of mechsnic's lien claims.

• Transfer Tax - Property is taxed at a rate of $ 2 per $ 500 or fraction thereof of the consideration paid minus the amount of any mortgage being assumed. This tax must be paid, usually by the seller, when the deed is recorded. For example, a $ 200,000 cash sale would require the owner to pay (2 * ((200,000)/500)) = $ 800.