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Real Estate Law – What’s Important To Know About Closing Costs in New York?

  • The closing costs vary on a number of factors such as the bank, time of the month, title insurance and title companies.
  • I am able to stay pretty accurately that generally speaking, closing costs will approximate about 6% of the loan you are seeking in addition to your payment.
  • One of the most expensive items in a closing are points, which is the banks fees for providing the loan. A point is 1% of the mortgage that you are seeking. There are other names for points. A bank will often charge 1-2 points.
  • Another expensive item is the New York State mortgage tax, charged by New York State.
  • For a house under $500,000 in NYC, your mortgage tax is approximately 1.85%.
  • Title insurance is also a requirement. This is a one-time payment and protects you against any adverse claims against ownership rights, boundary disputes, and unrecorded liens on property etcetera.
  • Homeowners insurance also has to be paid for in advance at the closing for the entire first year.

This short informational real estate law video was provided by Arnold Drucker, an experienced Jackson Heights Real Estate Lawyer.