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What closing costs cover when you buy or refinance

Appraisal fees

Attorney fees

Credit report fee

Discount points

Escrow fees

  • Homeowners insurance: Your lender will require you to purchase homeowners insurance to protect the investment on your home. Be sure to talk with a local insurance representative to determine how much insurance you need on your home.
  • Private mortgage insurance: If you are unable to put 20 percent down on your home, your lender may require you to pay a monthly private mortgage insurance (PMI). PMI may be paid in a lump sum at closing, or you can wrap it into monthly payments with your mortgage. Cost: between 1% and 2% of the total loan amount.
  • Property taxes: You’ll pay just over .6% of your property’s fair market value in Wake County. The important thing to note on property taxes is that this expense is prepaid. That means you can’t roll it into your mortgage. In other words, be prepared to pay your taxes at closing, regardless of the circumstances. Cost: varies based upon your loan.
  • Tax monitoring fees: The tax monitoring fees you pay as part of your escrow is for a service that will look for any outstanding tax bills that might be held on the property you’re looking to buy. Your title company will do its due diligence to take care of the property’s taxes before you close on the home. Cost: $50.

Flood determination fees

Loan origination and underwriting fees

Pest inspection fee

Recording fee

Survey fee

Title insurance fees

Being prepared for closing costs

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