Hello my name is Dawn Thomas and I’m with Silicon Valley and Beyond TV, and today I’m going to explain what typical closing costs are in an ordinary real estate transaction.
First of all there’s two different types of closing costs; what we call recurring and then another called nonrecurring.
Recurring fees would be things like principle, interest, property taxes, and insurance, we call that P.I.T.I. in the industry. Those are all things that always going to be there as long as you have the loan. Nonrecurring are going to be things like your one time fees to the lenders or any points that you have for getting your interest rate down, we call them discount points. Also title insurance, the cash to close, as I stated there’s certain lender fees that you will be required to pay. Most of the time they do require this in addition to what your loan is, but again all of those are one time fees.
So that is a summary of what your recurring and nonrecurring charges are and what you can expect to pay in the course of a real estate transaction. Thanks for tuning in today, this is Dawn Thomas with Silicon Valley and Beyond TV.
Watch this video, ‘Typical Buyer Closing Costs in a Real Estate Transaction,’ and more on YouTube!