Just saw our closing cost estimate and the 'prepaids' line is bigger than I thought

Our lender sent the first official numbers today. The prepaid interest and insurance part came out to $3,200, which is almost a full extra mortgage payment on top of the down payment. I knew it was a thing, but seeing that actual figure hit different. It really changes how much cash we need to bring to the table next week. Anyone else get surprised by a specific part of their closing costs?

4 comments

4 Comments

evan_grant701mo ago

Closing costs are full of those little jolts. My big shocker was the escrow setup. They wanted a full year of homeowners insurance upfront, plus two months of property taxes as a cushion. I had budgeted for the premium but not the tax piece. It added nearly four grand I hadn't mentally set aside. Made that final cash-to-close number a real gut punch.

blairm771mo ago

Yeah, my budget plan was basically just wishful thinking.

dianawilson1mo ago

Those escrow surprises are brutal, man.

julias441mo ago

My first home closing had a $2,800 prepaid line that made me rethink my whole budget. I always figured the down payment was the main cash hurdle. That number really showed me how much extra you need just sitting in your account.