Payment & Closing Costs

A Breakdown of Your Mortgage Payment

PRINCIPAL

The amount of money you borrowed. Each month, you pay back a portion of that principal.
Over time, interest becomes a smaller part of your monthly mortgage, and more of your payment
goes toward reducing the principal you owe.

INTEREST

The cost of borrowing money, usually expressed as an annual percentage of the loan amount, i.e. 7% or 8%.

PROPERTY TAXES

Taxes paid to local governments, usually charged as a percentage of your property value. Your lender
generally collects the taxes through your monthly payments. The amount of tax will vary by where you live and the type of property you own.

HOMEOWNERS INSURANCE

A policy that protects you from financial losses on your property that result from fire or other hazards.

PRIVATE MORTGAGE INSURANCE(PMI )

An insurance policy for down payments of less than 20% of the home price, which helps mortgage
lenders recover some losses if a borrower fails to fully repay. Mortgage insurance makes it possible
to buy a home with a low down payment.

Information You Should Know

You may be responsible for the following expenses associated with your real estate transaction:

FOR SELLERS (IN ADDITION TO COMMISSION )

Attorney’s Fees $500 – $1500
State & County Transfer Taxes $12 – $40 $1.50 per $1000
City of Chicago Tax Stamps (If applicable) $3.00 per $1000
Title Insurance (approximate)
$895 properties priced up to $100,000
$895, plus $20 per additional $10,000 of purchase price
Certification of Zoning Compliance Required for 1 – 5 unit buildings $90
Property Survey $375 – $500
Paid Water Bill Certificate $0 – $100
Prorated Real Estate Taxes
For current taxes not yet paid or due
Prorated Utilities & Assessment
For unpaid expenses up to the date of closing
Recording of Escrow Fees
Based upon sale price of the home
$200 – $500+

FOR BUYER

Attorney’s Fees $500 – $1500
City of Chicago Tax Stamps ( If applicable) $7.50 per $1000
Closing Points/Loan Origination (If applicable) 1% – 3% of loan
City of Chicago Tax Stamps (If applicable) $3.00 per $1000
Document Prep or Recording Fee $200 – $500
Flood Certification Fee $12 – $40
Homeowner’s Insurance Varies
Lead Paint Inspection (optional) $250 – $350
Lender’s Title Insurance $250 – $500
Loan Application/Appraisal $250 – $500
Prepaid Interest
Interest on loan from closing date to end of month
Private Mortgage Insurance (PMI)
Required if loan amount is more than 80%
Property Inspection $250 – $500
Reserve Fund for Real Estate Tax Escrow
2-8 months prepaid taxes (may be credited from seller)
Settlement of Escrow Closing Fee (paid to title company)
$550 for properties priced up to $100,000
$550, plus $50 per additional $50,000 of purchase price, for properties over $100,000
Tax Service Fee If taxes are held in escrow $50 – $100
Underwriting Fee $250 – $500
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