How Much Are My Closing Costs When Buying a Home in Montgomery County MD?

One of the major expenses from your pocket when buying a home are the down payment and closing costs.  After you have worked very hard to save enough money for a down payment, now you are for the shocking news, no one really likes to talk about this at the beginning ...because they assume that you already know..

Closing Costs 

The closing costs expenses can be several thousands of dollars in addition to your down payment;

What exactly are closing costs?

When buying a home in Maryland, you will be required to pay closing costs in addition to the price you are paying for your new house.

Closing costs are simply the fees associated with purchasing a home or if you are refinancing, you will have to pay as well.

One of the costs that are different from county to county in Maryland is the County Transfer Taxes

The costs may differ somewhat, but this report will give an accurate estimate of what you should expect to pay when buying a home in Maryland.

To find out exactly how much your closing costs would be, please read our entire report about closing costs expenses in Montgomery County MD here: 

http://www.reallynicehomes.com/montgomery-county-homes-sale/what-are-my-closing-costs-when-buying-home-montgomery-county-md/

When buying a home in Maryland, you will be required to pay closing costs in addition to the price you are paying for your new house.

Closing costs are simply the fees associated with purchasing a home or if you are refinancing, you will have to pay as well.

One of the costs that are different from county to county in Maryland is the County Transfer Taxes

The costs may differ somewhat, but this report will give an accurate estimate of what you should expect to pay when buying a home in Maryland.

The breakdown for each of your charges are as follows:

Title Services and Lender Tittle

You will be charged for Title Services and Lender's Title There are two main types of title insurance: owner’s title insurance, which protects the property owner from title issues, and lender’s title insurance, which protects the mortgage company. 

There are two main types of title insurance: owner’s title insurance (optional to the buyer, but recommended), which protects you as the property owner from any title issues, and the lender’s title insurance, which protects the mortgage company and it is required by your lender. A  lender's title policy will cost you around .5% of the sales price.

Government Recordings and Transfer Taxes 

These charges are typically split equally between the buyer and the seller. They are:

• County Transfer Taxes
• State Transfer Taxes
• County Recordation Taxes

County Transfer Tax: In a purchase of a home Montgomery  County Maryland you and the seller will share this cost 50-50. If the home is valued at $300,000, the county transfer tax is 1% of the sales price. Your portion as a buyer is .5%. In this purchase, the total County Transfer Tax is $3,000  Your portion to pay as a buyer is $1,500

State Transfer Tax:  The State Transfer Taxes is 1/2% of the Home's sales price. Just like the County taxes, this cost is typically split 50-50 between the buyer and the seller. In our example of a $300,000 purchasing price, the total State Transfer Tax is $1,500. Your portion to pay as a buyer is $750

Note: If you are a first-time buyer in Maryland, you do not pay State Transfer Taxes..but the seller will still be obligated their own portion as sellers...in this case, you pay $0 and the sellers still pay $750

Recordation Taxes: The County charges this to both, the buyer and the seller. The total charge is computed with this formula. Take .89% of the sales price up to $500,000. If the house purchase price is above $500,000, you will pay in addition a 1.35% of any portion above $500,000 - Don't over complicate this...both buyer and seller pay .89% up to $500,000 home..if the house is only $300,000...then you only pay $2670 after splitting it worth the seller...Your portion to pay as a buyer is $1,335

If the house was worth $301,000...you would've paid 1.35% of $1000 more..which translates to $135

..and finally, in Montgomery County appreciates the fact that you the buyer intends to use this house as your principal residence..for that reason the State of Maryland gives you back $890 for living in our great state! 

Your real estate should provide you with a Closing Disclosure prior to going and signing the documents 

This closing Disclosure (CD) is prepared by the title company that is performing the closing of your purchase. 

READ MORE: http://www.reallynicehomes.com/what-are-my-closing-costs-when-buying-home-montgomery-county-md/
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