Costs to buy a home in Montgomery County, Maryland

Posted by BJ Matson on Wednesday, July 24th, 2013 at 2:23pm.

Below are fees associated with your purchase on a $500,000 sales price
20% down= $100,000  *no mortgage insurance
$400,000 loan amount  *conforming loan amount

$750       -Title Company fees.  If Short Sale or Foreclosure, would be $1,250
$962        -Owner’s Title insurance (optional, but strongly suggested)
$1,023     -Lender’s Title insurance (required)

$120            -Govt. Recording Fees
$2,500          -*Montgomery County Transfer Tax (Split 50/50= $5,000 /2)
$1,250          -*State Transfer Tax (Split 50/50= $2,500/2)   $0 if First Time Buyer
$1552.50       -*Montgomery County Recordation Tax (Split 50/50= $3105 /2)
$195               -Survey. not done on condos
$35                 -Termite report.  Ask lender if required.
$75                 -Radon test
$400              -Home inspection

$425       -$400 Appraisal & $25 Credit Report paid upfront
$900       -lender fees
$2,000   -.500 origination point charged by Lender. You can opt for higher rate, to make this $0.
$345        -Realtor admin fee
$3,072    -Escrow account for Property Taxes. If $4600/year, 8 x $384
$225        -Escrow account for Homeowner’s Insurance. 3 months x $75.
$900       -1 year Homeowner’s Ins. policy paid in advance
$197.28    -*Prepaid Interest. 400k X .045 / 365= $49.32/day  4 days left in month=
$15,681.78  total estimated costs, escrows, transfers, prepaids


These amounts shown above are paid upfront
$425  Appraisal & credit report, paid to your Lender
$400  Home Inspection
$75    Radon test. Inspector can have it done while out there for inspection, same with Termite Report.
$35    Termite report. Ask Lender if required.
$900   12 months HAZ insurance paid in advance to Insurance company. $75/month  N/A for condos.


Remember, we can write up your Offer so we ask for Seller Subsidy.  This will offset the above 15k we estimated, and help lower the amount of Funds you will need out of your pocket.  This is part of deciding what Price we want to Offer the Seller.  The more we are going to ask for in a credit, the harder to also push for a lower Price.  I’ve seen plenty of deals go over asking price, to get this Seller Credit.. so the Seller still nets the same.  Just remember, the property still needs to appraise for the agreed upon price.
Typical max credit= 3%, $15,000

BJ MatsonRealtor®
Home Buying Advisor • RE/MAX
301-881-8900 text
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