Dear Chik Sum Gong:
Your closing costs will vary based on the bank you go to for the loan and your qualifications. You need to speak to a mortgage banker(s) and get your self pre-qualified to determine how much you can borrow, what interest rate you will receive and how much the closing costs will be.
Often times a lender may be willing to lower the interest rate if you pay points up-front. A point is 1% of the loan amount. Usually 1 point will give you a interest rate reduction of about a quarter of a percent. By doing this you add another 1% to your closing costs, but if you plan on owning the house for a long time, you will save money in the long run.
I usually tell buyers that a good rule of thumb to use when figuring closing costs would be to take 5% of the actual loan amount. That is usually a good estimate, but it can vary greatly depending upon your personal qualifications.
Hence, talk to a mortgage banker and you will get the best answer to your question. If I can be of further assistance please let me know. Good luck!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783