Fee Comparison for Conventional Mortgage vs. Cash

[Ernest Grindle]

Hello, I'm about to purchase my first investment rental property. I received a preapproval for a $68.8K loan on an $86K purchase. I'm planning to refinance in 6 months to pull out some of the ARV equity after some rehab. I'm wondering what the savings would be if I pay cash vs. do a conventional mortgage for the initial six months. Can someone tell me which of the below fees I would still need to pay if I buy the house cash? Also, could you tell me which fees if I paid for the initial six month mortgage I would not have to repay again for the refinance?

Fee	Amount
Loan Origination Fee	$895
Appraisal	$465
Credit Report	$35
Flood Certification	$12
Title - Abstract or Title Search	$85
Title - Title Update and Recording	$35
Title - Record/Release/Confirm	$100
Title - Deed Preparation	$150
Title - Courier Fee	$70
Title - Title Binder	$40
Title - Settlement Agent Fee	$450
Title - Lender's Title Policy	$494
Title - CPL Fee	$20
Recording Fee - Deed	$100
City/County Deed/Mortgage Tax/Stamp Fee	$130
State Deed/Mortgage Tax/Stamp Fee	$395
Interest for 15 Days	$145
Hazard Insurance	$720
Hazard Insurance	$180
Property Taxes	$178
Total	$4,699

Another question is for the title fees. I was planning to use my own attorney for the title and closing, so I wasn't sure if this fee structure is based on me using the mortgage provider to do the title or if it would be in addition to what I pay my closing attorney.

One reason for not automatically paying cash is that it will use up the cash I have available to buy a second property.

Thank you for your time.

Ernie

[Jen R.]

I can share details from two of our recent closings in Ohio:

Closing #1 (conventional mtg):

Origination fee ($1082); appraisal fee ($350), credit report ($50), interest for first month ($180), insurance for first year ($730), escrow deposit ($1490), title services & lender's title insurance ($895), owner's title insurance ($448), gov't recording charges (deed &mortgage: $160), survey ($165). 

Closing #2 (cash purchase):

Title services ($435), owner's title insurance ($236), gov't recording charges (deed only: $28). 

Comparing these two closings, we saved the following by not having a mortgage: origination fee, appraisal fee, credit report, interest, lender's title insurance, mortgage recording fee, survey. The other items (insurance, taxes), we just avoid having to prepay. And yes, you will pay these fees again when you refinance (except maybe the survey). 

Hope that helps!