True closing costa on CR loans

[diego]

Hi Scott,

I followed your series of articles on CR loans with great interest.

However I did not come away with an understanding of what the legal fees were for the loan.

If I understand correctly the closing costs were 1.5% (approx).
Am I correct in assuming the legal fees to prepare the loan were .5%

Wouldn’t that make the closing cost of the CR loan less than the average closing costs of a US loan???

I was under the impression from what I thought I had read somewhere on this website or in your book that the average CR costs were more than the US average? Was I mistaken or has this changed???

Thanks for the great site!

[diego]

The above table (which did not paste here) shows that mortgage closing costs on a $100,000 loan is 1.72%

From you article “New Mortgage Amount – 90% = US$292,500
Minus Commission & Legal Expenses = US$4,961.48.” About 1.60%

If the bank commission was 1% then the legal fees were .60%

Is this correct? Were they not charged attorney fees for drawing up the mortgage?

Does the 1% bank commission cover the attorney’s fee?

I am a bit confused.

AS I understand it closing costs for transferring a property is around 3.62%

Closing costs for a mortgage is around 1.72% but you list.60%

My understanding is that the total closing costs for a purchase with a mortgage would be 5.34%

I am not the best at accounting (to say the least). But can you please show me my flawed resoning?

[Andrew]

I did not even see this thread – sorry! Working 100+ hours per week and now trying to do that and not knowing for how long we’ll have electricity has forced me to focus more on ultra high priority items.

The closing costs on this transaction were extraordinarily low Diego. Please do not use this example as the ‘norm’ – it is not all normal. Your initial estimate of around 3.62% is far more common.

Scott Oliver – Founder
WeLoveCostaRica.com

[diego]

Well I know Costa Rica is not normal – and I have gootten to a point where I accept the kaos as normal. So what is normal closing costs. What should I expect???? Thanks!

[Author]

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