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  • Writer's pictureLaw Office of Jeanne M. Reardon

Purchaser's Closing Costs

Purchasing a home involves more out-of-pocket expense than just the down payment. There are also closing costs to pay for items such as title policies, recording fees, inspections and fees that a lender charges for obtaining a mortgage. The following schedule is an estimate of the closing costs that a buyer can typically expect to pay at closing.


Taxes: (if applicable)

Mansion Tax 1% of purchase price when $1,000,000 or over

Mortgage Recording Tax (NYC)

• Sales under $500,000 1.8% of entire mortgage

• Sales $500,000 and over 1.925% of entire mortgage

Note: Click here to view table of mortgage recording tax amounts by county. Mortgage recording tax does not apply for cooperative apartment purchases.

Mortgage Associated Fees:

Origination Costs – points varies, usually 0 - 3% value of loan

Appraisal $350 (approx)

Underwriting $450 (approx)

Processing $450 (approx)

Application $350 (approx)

Bank Attorney $850 + up

Real Estate Tax Escrow 2-6 months

Short Term Interest varies, depends on the day of the month in which the closing


Title Insurance Fees:

Owner and Lender Title Policies 5% - 7% of purchase price (approx)

Municipal Searches $450 (approx)

Deed Recording $375-950 (approx based on county)

Real Estate Taxes varies

Note: Purchasers of cooperative apartments usually do not purchase title insurance, and instead pay for a lien search which is approximately $450. However, see our blog entry, Co-op Buyers Should-Consider Purchasing Title Insurance, which explains particular situations in which it is advisable for purchasers of cooperative apartments to purchase a type of title insurance policy called an Eagle 9 policy.

Homeowner’s Insurance:

Policy varies depending on lender's required coverage and purchase price

Home Inspection:

Home and Termite Inspection $450 (approx)

Legal Fees:

Purchaser's Attorney fee varies, but usually flat-fee basis (consult with your


To speak with an experienced real estate attorney about a closing, call us at (516) 314-8433. To learn more about our real estate closing services visit us at:


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