Closing Costs NYC - Are you serious?!

[Garrett M.]

Hey Everyone,

I am new to game and looking to purchase my first house this year. My question pertains to the closing costs associated in New York, specifically NYC.

I've been speaking with a few lenders over the past week to find one that is familiar with SONYMA type loans - not sure if this is pertinent to my question but may very well be, given what 'I' see as very high closing costs. I have found an expert in SONYMA's who took some basic information and put together a Good Faith Estimate for me. The breakdown is as follows:

Assuming a $600k purchase price on a 3-family home

Total Loan Amount $540,000

Origination Charges: $845

Appraisal Fee:$550

Credit Report: $22

Flood Certification: $8

Up-Front Mortgage Insurance: $8,856

Tax Service Fee: $75

Inspection Pre-Closing: $155

Title Services and Lenders Title Insurance: $3965

Owners Title Insurance: $910

Government Recording Charges: $1034

Transfer Tax: $21,345 (WOW!!!!!)

Initial Deposit In Escrow Account: $2732

Daily Interest Charges: $1165

Hazard: $1992

Total Estimated Settlement Charges: $43654

Under another section titled ' Estimated Cash Required for Closing'

Subordinate Financing: $15000 (**could someone explain this please?)

Other Credit -Seller Transfer $10950 (**could someone explain this as well please?)

Total Credits: $10950

Total Estimated Funds Needed to Close/Cash Back: $77682

Adding the numbers up, with a $60,000 down payment and $77,000 in closing costs, that is an out of pocket expense of $143,000 to get into this home.

Before going to lenders I must have gone though at least a dozen websites that estimate closing costs in NYC. Based on the home price, down payment amount and bank/attorney fees etc. I was expecting to pay out of pocket anywhere from $14,000 to $22,000 to close. When I saw this $77,000 number I thought it was a mistake! Have I been deluded in the past and this is the true reality?

Edit:

*** The main benefit of this type of loan allows me to get in to a 3-family with less than the conventional 25% downpayment at only a 10% downpayment at $60K, and pay upfront MI rather than until adequate equity is in place. My assumption is the high closing costs are associated with the type of loan and would be lower if I went with conventional. Hoping some experts at BP can let me know if this is the case!

Thank you!!