Closing costs are part of any mortgage, and they’re assessed whenever you either sell the home or pay off the mortgage. The average closing cost is about ten times the cost of the average cash advance. The average amount of a closing cost has risen nationally, although not universally. Added to the turmoil and more stringent regulations in place it may be awhile before the real estate industry has completely recovered. Resource for this article – Mortgage loan closing costs on the rise by Personal Money Store.
The nation’s highest closing costs
New York, according to Bankrate, has the honor of having the highest closing costs within the nation. The closing costs individuals pay in New York would have just about everyone hard up for a cash loan. For a $ 200,000 mortgage, closing costs are $ 5,623 in New York. It’s too bad there isn’t really closing cost modification to go with mortgage loan modification. Most people would have to look into getting a personal bank loan for those kind of costs, as not everybody has enough instant money on hand to pay that much. Alaska, California, Texas, and Utah rounded out probably the most expensive states.
Closing costs rise nationwide
Since last year, closing costs for mortgage loans went up by 36.6 percent. 3rd party fees went up 47.2 percent, and lender costs went up by 22.8 percent. The average cost from last year was $ 2,739 which went up to $ 3,741 for this year. That’s a rise of more than $ 1,000, which is about three times the typical money loans. As the market has become somewhat depressed, getting funding together for mortgage loans is a harder thing these days. There is also a lot more regulation concerning consumer finance.
Costs to lenders increasing also
The costs for lenders has also gone up, which is part of what fueled the fee increase. Lenders have to guess what the closing costs are, and if they guess too little they have to pay fines. The Federal Reserve also banned bonus incentives for loan brokers who sell customers on higher rates than they might normally pay, as outlined by the Los Angeles Times. However, if turning a profit depends entirely on bilking the consumer, then change is needed to a business.
Citations
Bankrate
bankrate.com/finance/mortgages/2010-closing-costs/
LA Times
latimesblogs.latimes.com/money_co/2010/08/federal-reserve-mortgage-lender-bonuses.html
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