Mortgage Closing Costs in NYC

[scotty]

Hey guys, a broker just told me that "your attorney will give you an exact breakdown closer to closing, and your mortgage banker will give you an estimate as well."

Are these two separate parts? For example, one quote I got from BOA mortgage mentioned a closing cost around ~$10k. Is this additional to the breakdown my attorney would list?

I just got an accepted offer on a co op. Please if anyone can tell me whether the mortgage banker costs are total or just for the mortgage that would be very helpful. Thank you.

[aslan]

Hey Simon, I believe your attorney’s spreadsheet will be all encompassing.

The BoA breakdown may refer only to closing costs related to the financing, but would have to see it to know. It should be obvious if you only see financing related closing costs on BoA's sheet.

The below is a great article on what closing costs typically are in New York City, including mortgage closing costs in NYC.

[Benny]

Just got a comprehensive answer from a broker who heard it from a very knowledgeable, private mortgage banker at a big bank. Here's what the mortgage banker had to say on this:

See below: I’m not sure I’m allowed to join these groups and answer questions due to big brother / compliance reasons. (I will look in to it.) But please feel free to pass around the answer below to your team. I’d be happy to answer any questions. I’m a phone call away at [redacted].

Lenders are required by law to give clients a closing cost estimate. If our estimate winds up being below the actual final closing cost (within a certain tolerance) we are actually required to give a credit for that difference. Whenever there is a material change to the deal which will affect the final closing costs, such as increasing the loan size (which would affect the mortgage tax) or a lock extension, we are required to send the client a revised estimate within three days of knowledge.

Below is what our estimate will include – and what it won’t include.

Will include :

-Processing Fee
-Any points
-Appraisal fee
-Credit report fee
-Bank attorney fee
-Escrow deposit (not really a fee but it may be paid at closing)
-Prepaid interest (not really a fee but will be paid at closing)
-Title insurance (lender and borrower)
-Title searches
-Recording fees
-Mortgage & mansion tax


Will not include:

-Borrowers attorney fees
-Fees required by the building, move in, move out, etc.
-Adjustments, such as partial month HOA or remaining quarterly taxes collected by title and paid by title.