Closing costs are the expenses incurred by both the buyer and seller when transferring ownership of a property. In New York State, these costs can be significant and include a variety of fees. This calculator aims to provide an estimate for common buyer closing costs. Remember that actual costs may vary, and it's crucial to consult with your real estate attorney and lender for precise figures.
Key Closing Cost Components in NY:
Mortgage Recording Tax: This is a state tax levied on the mortgage loan amount. The rate varies based on the loan amount and the location (within or outside the Metropolitan Commuter Transportation District – MCTD). For loans up to $500,000, the rate is typically $0.40 per $100 ($0.004). For loans over $500,000, it's $0.50 per $100 ($0.005), but this calculator uses a user-input rate for flexibility.
Metropolitan Commuter Transportation District (MCTD) Tax: An additional tax applied to mortgages within the MCTD (which includes New York City and the counties of Nassau, Suffolk, and Westchester). The rate is typically $0.25 per $100 ($0.0025) on loans over $500,000.
Mansion Tax: A progressive tax imposed on the sale of residential real property where the consideration (purchase price) is $1 million or more. The rate increases with the purchase price.
Title Insurance & Services: Covers the lender's and buyer's interests in the property title against future claims. This includes title search, examination, and policy fees.
Appraisal Fee: Paid to an independent appraiser to determine the market value of the property. Lenders require this to ensure the loan is adequately secured.
Attorney Fees: Legal representation is essential. Your attorney will review contracts, title reports, and attend the closing. Fees can vary.
Bank Fees: Lenders may charge various fees, such as origination fees, points, credit report fees, etc. These are not included in this basic calculator but are part of the Loan Estimate.
Homeowners Insurance: Lenders require proof of homeowners insurance at closing, often requiring the first year's premium to be paid upfront.
Property Taxes & HOA Dues: Prorated amounts may be due at closing, depending on the closing date and local practices.
How the Calculator Works (Simplified):
This calculator estimates costs based on your inputs.
MCTD Tax: Calculated as (Loan Amount / 100) * MCTD Tax Rate. This is only applicable if you are within the specified counties.
Mansion Tax: Calculated as (Purchase Price / 100) * Mansion Tax Rate. Applied only if the Purchase Price meets the threshold for this tax.
Other Fees: These are entered as direct estimates.
Disclaimer: This calculator provides an estimate only and does not constitute financial or legal advice. Closing costs can vary significantly based on property location, loan type, lender, and specific negotiations. Always verify estimates with your professionals.
function calculateClosingCosts() {
var purchasePrice = parseFloat(document.getElementById("purchasePrice").value);
var loanAmount = parseFloat(document.getElementById("loanAmount").value);
var mortgageTaxRate = parseFloat(document.getElementById("mortgageTaxRate").value);
var mansionTaxRate = parseFloat(document.getElementById("mansionTaxRate").value);
var titleInsuranceEst = parseFloat(document.getElementById("titleInsuranceEst").value);
var appraisalFeeEst = parseFloat(document.getElementById("appraisalFeeEst").value);
var attorneyFeeEst = parseFloat(document.getElementById("attorneyFeeEst").value);
var mcoTaxRate = parseFloat(document.getElementById("mcoTaxRate").value); // Metropolitan Commuter Transportation District Tax
var totalClosingCosts = 0;
var breakdown = "";
// Input validation
if (isNaN(purchasePrice) || purchasePrice <= 0 ||
isNaN(loanAmount) || loanAmount <= 0 ||
isNaN(mortgageTaxRate) || mortgageTaxRate < 0 ||
isNaN(mansionTaxRate) || mansionTaxRate < 0 ||
isNaN(titleInsuranceEst) || titleInsuranceEst < 0 ||
isNaN(appraisalFeeEst) || appraisalFeeEst < 0 ||
isNaN(attorneyFeeEst) || attorneyFeeEst < 0 ||
isNaN(mcoTaxRate) || mcoTaxRate 0) {
totalClosingCosts += mortgageTax;
breakdown += "Mortgage Recording Tax: $" + mortgageTax.toFixed(2) + "";
}
// Metropolitan Commuter Transportation District (MCTD) Tax
// This tax is typically applicable for loans over $500k within specific counties.
// The rate is often around 0.25% or $0.25 per $100. Assuming user provides this rate.
var mctdTax = (loanAmount / 100) * mcoTaxRate;
if (mctdTax > 0) {
totalClosingCosts += mctdTax;
breakdown += "MCTD Tax: $" + mctdTax.toFixed(2) + "";
}
// Mansion Tax
// Applies to properties $1M or more in NY. Rates vary.
var mansionTax = 0;
if (purchasePrice >= 1000000) {
mansionTax = (purchasePrice / 100) * mansionTaxRate;
totalClosingCosts += mansionTax;
breakdown += "Mansion Tax: $" + mansionTax.toFixed(2) + "";
}
// Estimated Title Insurance & Services
totalClosingCosts += titleInsuranceEst;
breakdown += "Estimated Title Insurance & Services: $" + titleInsuranceEst.toFixed(2) + "";
// Estimated Appraisal Fee
totalClosingCosts += appraisalFeeEst;
breakdown += "Estimated Appraisal Fee: $" + appraisalFeeEst.toFixed(2) + "";
// Estimated Attorney Fee
totalClosingCosts += attorneyFeeEst;
breakdown += "Estimated Attorney Fee: $" + attorneyFeeEst.toFixed(2) + "";
// Display Total and Breakdown
document.getElementById("result-total").innerText = "$" + totalClosingCosts.toFixed(2);
document.getElementById("result-breakdown").innerHTML = breakdown;
}