How much in closing costs should an assumption charge?

It shouldn't cost a fortune. Assuming you qualify for the new loan, your current bank should be willing to allow an ex-spouse assume the debt. Typically the fees should run not more than a couple hundred dollars plus title/escrow charges. Even title charges should be nominal if you use the same title company you used when you got this loan because they are already insuring the transaction. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

sashad: The costs you mentioned really don't sound unreasonable. No title costs, no appraisal. In my humble opinion, this is as cheap as you can get. You can't do a regular refinance for that amount. Go for it!

It won't be too bad.. Certainly less than if you just went out and refinanced the home in your name only... if the lender is only charging $908, plus other minimal fees, then that's a good deal, since a typical refinance transaction can costs as much as 2% to 3% of your loan amount.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. 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

Yes, it sounds about right. The costs are less than for a purchase or a refinance but much of the same process still applies. The challenge is how to wrap those costs into the new mortgage. I assume you have looked at the current rate on the loan vs. refiancing? Assumption may save some costs but if the rate isn't competitive you might be better off with a straight refinance which would likely involve less out of pocket costs as long as there is some equity in the property. pdumouchel@primelending.com or 843-619-6025. If you decide to look into refinancing I can help you, otherwise good luck!

Yes, those fees sound correct, and reasonable.