One of the costs of a mortgage loan is the closing costs, or the fee you pay when you finally pay your mortgage off or sell your home. The average closing costs nationally cost about ten times as much as a payday loan. The national average for closing costs has been going up. New regulations are in place, and with the turmoil of the real estate industry, it will be hard to tell when it has recovered.
States with high closing costs
New York, as outlined by Bankrate, has the honor of having the highest closing costs in the nation. New York closing costs would send King Midas out for a money advance. For a $ 200,000 mortgage, closing costs are $ 5,623 in New York. It would be nice to get mortgage loan modification and closing cost modification at the exact same time. A lot of individuals are strapped for cash, and since not every person maintains enough instant money for these kinds of fees, it would send most people out looking for a personal unsecured loan. Texas, Utah, California and Alaska were the five most expensive states to close a mortgage in.
Closing costs are increasing everywhere
Since last year, closing costs for mortgage loans went up by 36.6 percent. Fees from lenders went up 22.8 percent and fees from third parties went up by 47.2 percent. The average for this year went up to $ 3,741 from last year’s $ 2,739. That’s more than $ 1,000 more which is about three times the size of a typical cash til payday. 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.
More expensive for lenders to operate
Costs for lenders to do business has gone up too. Mortgage lenders are required to estimate what the closing costs could be, and if they lowball the estimate they get fined. Borrowers getting sold on a higher rate than they could have gotten can’t be incentivized anymore as the Federal Reserve, according to the Los Angeles Times, changed some rules governing loan brokers. However, if turning a profit depends entirely on bilking the consumer, then change is needed to a business.
Read more on this topic here
Bankrate
bankrate.com/finance/mortgages/2010-closing-costs/
LA Times
latimesblogs.latimes.com/money_co/2010/08/federal-reserve-mortgage-lender-bonuses.html
No comments:
Post a Comment