mortgage

Video: Closing costs climb

 

 

[Begin VIDEO with Kristin Arnold, Bankrate.com, speaking]

Intro: Mortgage closing costs are up again this year. But you can comparison-shop lenders as well as title insurance. Bankrate.com's annual mortgage fee survey takes a look at highest and lowest closing cost states.

Take VO: In a real estate market flooded with low-priced homes and historically low interest rates, you think you would also find fees associated with buying a home also reduced. But according to Bankrate.com's latest survey on closing-costs ... you'd be wrong.

Nationwide, the average origination and title fees on a $200-thousand dollar purchase totaled over four-thousand dollars ($4,070.00) ... that's an 8% jump compared to 2010 when the average closing costs total was just over 37-hundred dollars ($3,741.00).

(MAP OF UNITED STATES - with the three highest closing costs states - with their amounts - highlighted on the map).

New York sits in first place for the state with the highest closing costs ($6,183); followed by Texas ($4,944) and Utah ($4,906). New York and Texas have dominated the top spots for the last five years.

[Cut to Polyana da Cost speaking]

SOT: Polyana da Costa - Staff Reporter/Bankrate.com

("Lenders say it's because of increased regulation. They say that in order to adapt to and comply with all the new mortgage rules that the government has implemented in the last two years they have to spend more money. In other words, it costs more to process and underwrite a loan these days than it did in the past. And they are passing the costs on to the consumers.")

[Continue Kristin Arnold's narration]

On the flip side - the states that rank lowest in closing costs are Arkansas, North Carolina and Indiana. In each of these states, the average closing costs are close to 34-hundred dollars ($3,400).

Of course you don't have to settle on the first number your mortgage lender throws at you. Some of the fees included in your closing costs, such as appraisals and credit reports, aren't really negotiable. However, in most states, you have the opportunity to shop around.

[Cut to Polyana da Cost speaking]

SOT: Polyana da Costa
("They need to compare and ask questions. If possible, go to three brokers and three banks and get a good faith estimate, which is also known as a GFE. It's a form you should receive no more than three days after your apply for a mortgage. Once you have those forms, look at the origination charges like processing fee, application fees and any fees paid directly to the lender. If you don't understand what the charge is for don't be afraid to ask questions.")

TAG: To view closing costs state-by-state, visit Bankrate.com's mortgage closing costs survey. I'm Kristin Arnold.

[END VIDEO CLIP]

« Back to the 2011 Closing Costs Survey.

 

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