Buyers Are Paying Less in Closing Fees than in 2014

Closing costs dropped 7.1 percent year-over-year, falling from $1,989 in 2014 to $1,847 in 2015, according to a newly released Bankrate.com survey. The Bankrate analysis requested Good Faith Estimates from up to 10 lenders in large cities for a hypothetical $200,000 mortgage for a single-family home assuming a 20 percent down payment.

While average origination fees were down about 22 percent in this year’s survey, average third-party fees rose nearly 22 percent.

However, industry leaders are warning that mortgage lending and its costs will likely rise, notably on title insurance. We agree and suggest you seek today’s buying opportunities!

Source: “Even as Mortgage Closing Costs Drop, You’d Better Shop Around,” Bankrate.com (Aug. 3, 2015)

Home Buyers Face “Higher Closing Costs”

Rising mortgage rates aren’t the only problem house hunters are facing. Closing costs for loan origination and other fees have increased 6 percent in the past year, according to a survey by Bankrate.com.

Borrowers with stellar credit who are making a 20 percent down payment are still forking over an average of $2,402 in closing costs on a $200,000 loan.

The main catalyst for the increase in closing costs is origination fees, have jumped 8 % in the past year. Rising interest rates often cause origination fees to go up, too. Lenders are also having to do more work underwriting loans. Rising mortgage rates often mean lenders make less profit on their loans, so they try to make up for the loss with higher closing fees, Guy Cecala, publisher of Inside Mortgage Finance, told USA Today.

Borrowers should shop around for mortgages because some lenders may offer loans with variable fees. We recommend contacting two local, experienced lenders for advise.

Source: “Mortgage closing costs are on the way up,” USA Today (Aug. 5, 2013)

Mortgage “Closing Costs” on the Decline!

Great news to share! Closing costs have dropped by 7 percent over the last year, according to an annual survey on closing costs conducted by Bankrate.com.

Title insurance and other third-party fees also saw a drop in the last year, falling 12 percent, and origination fees fell 1 percent, according to Bankrate.com’s survey.

“This is the second year in which lenders are required to estimate third-party fees within 10 percent of the final cost. It seems like they’re getting more accurate, which helps explain the sharp decrease in these fees over the past year,” Greg McBride, Bankrate.com’s senior financial analyst, said in a statement. “The main lesson of this survey for consumers is to shop around for at least three different estimates. While no one is going to move to a new state just because closing costs are lower, it’s important for people to realize that there is variation even within their neighborhood, and that they can save by being an educated consumer.”

View the survey, which contains all states’ average closing costs.

Source: Bankrate.com