If you have ever purchased a home you know that closing costs can be expensive. There are loan origination fees, processing fees, credit check fees, and third party fees– just to name a few. The good news is that these costs have gone down.
Recently, there have been new laws passed that require lenders to be more accurate with closing costs. This is great for homebuyers because it lowers their costs of closing. According to a new survey done by Bankrate.com, the average costs of a closing have dropped by 7.4% in the past 12 months. For the average closing on a $200,000 house with 20% down it costs $3,754, which is $300 less than a year ago. The prices of homes are still at an all-time low and with the costs of closing going down, why wouldn’t you buy a home at this time?
Think this is expensive? The state of New York is the worst in terms of closing costs. That $200,000 home will cost you $5,400 in closing cost fees. Yikes! Some of the other states above the national average? Texas, Pennsylvania, and Florida. So, buyers, beware!
Source: CNN Money