What should be the average closing cost on a $580,000 loan in CA?

Depends on what loan you are taking out. If you are going conventional, without taking in account an escrow account I would estimate about around $5000. Also depends on the county. Some areas the buyers pays for their entire title insurance.

There is a vast difference in average cost for a $580,000 home purchase loan and a refinance loan and variations depending on the type of loan. With a purchase loan, the amount of work for the escrow and title company is much more and title and insurance costs are much higher, as the risk is much higher in regards to any unforeseen liens/problems that could come up in the future, and could require any larger title insurance payout to the lender and/or the new owner on the deed of trust. There are traditional closing costs vs. complete settlement/closing costs. Traditional closing costs are nonrecurring such as lending, escrow, title, appraisal, home inspection, title transfer, and recording fees, typically. But other settlement fees that fall under the wider heading of closing costs can include a few months to 9 months of property tax impounds, and collecting 14 months of homeowner insurance. If you have a VA, an FHA or a USDA loan you will have an upfront fee financed into the loan perhaps, but still counting as a settlement fee or closing cost. Traditional closing cost average might be about $3200 for a refinance loan, yettwice that for a purchase loan. Add in necessary tax & insurance impounds and that increases costs that much more. You can take a higher rate and get credit towards some costs from the lender...often just a couple of eighths higher in rate can eliminate 1% of the loan or $5800. With perhaps just one eighth increase in rate you might have a "no closing costs" refinance with no impounds. I also assist some of my borrowers in qualifying for down payment assistance as one can make much more than $100,000 a year depending on location of the home and how many individuals living in the home. So that can reduce cost even more on a purchase loan. Our objective has always been to fund loans faster and more efficiently than most banks, but still have the lowest rates/pricing. If you have more questions or would include us in comparing what is available to you please to notify me via my profile.

There is no such thing as "Average"... every deal is different and every property is different.. and everything is negotiable.. Realistically, you should get with your loan officer and let him put together a Loan Estimate.. this should give you a breakdown of the costs associated with YOUR property.. If you don't have a loan officer already, Then I'd be happy to assist.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893