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Which Closing Costs Are NOT Negotiable?

Posted By Jim On 08/31/2006 @ 8:06 am In Personal Finance,The Home | 1 Comment

I posted some of the closing costs that were negotiable iyesterday, what about list of closing costs are not negotiable? Here they are:

804 Credit report (this is what the broker pays; he/she cannot charge you more) —$20
809 Tax-related service fee (taxes are taxes)
Flood certification fee—$18
MERS fee (a fee for accessing the automated underwriting system) —$3.95
Closing agent courier fee—$25
901 Pre-paid interest (the daily interest you pay if you close on your home before the end of the month) $27.28 a day
903 Hazard insurance premium—$600
1001 Reserve for hazard insurance premium (two months at $50 a month) —$100
1002 Reserve for mortgage insurance premium— (one month at $109.13) —$109.13
1004 Taxes and assessment reserves (four months at $73 a month) $292
Compensation to broker (also known as Yield Spread Premium, this is the fee the lender pays the mortgage broker. It is usually 1% to 3% of the loan. The higher the YSP, the more you can negotiate your interest rate.)
1201 Recording fees—$52

Again, this list is via USA Today [3].

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[3] USA Today: http://www.usatoday.com/money/perfi/housing/2006-06-22-mym-side_x.htm

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