A real estate agent in Orlando is preparing a buyer for closing costs on a $275,000 condominium purchase. The buyer is obtaining an 80% LTV loan and the lender requires a loan origination fee of 1.25%, an appraisal fee of $475, credit report fee of $35, and flood certification of $25. The buyer will also need owner's title insurance estimated at $1,200. What category represents the largest portion of the buyer's closing costs?
Correct Answer
A) Lender fees and points
Correct: Loan amount is $220,000 (80% of $275,000). Origination fee: $220,000 × 1.25% = $2,750. Plus appraisal ($475), credit report ($35), flood cert ($25) = $3,285 total lender fees. This exceeds the title insurance cost of $1,200. Why not B: Third-party services are typically less than lender fees. Why not C: Title insurance of $1,200 is less than lender fees. Why not D: Government fees weren't specified in this scenario.
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In Florida real estate transactions, all of the following are typically paid by the buyer at closing EXCEPT:
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A Tampa Bay investor is purchasing a duplex for $185,000 with a $148,000 mortgage. In Hillsborough County, the documentary stamp tax on the deed is $3.00 per $1,000 and the intangible tax on the mortgage is $2.00 per $1,000. The title insurance premium is $5.75 per $1,000 of the purchase price. What is the total cost for documentary stamps, intangible tax, and title insurance?