As home loan rates continue to fall, the cost for closing a mortgage has risen nationally. The annual survey by Bankrate revealed that rising mortgage closing costs have been on the rise. On average, closing costs such as origination fees and third-party fees were $3,741 on a $200,000 mortgage, a 36.6% increase from last year’s average of $2,739, Bankrate.com reported.
The Bankrate survey considered San Francisco and Los Angeles in California as they ranked fourth and fifth respectively in a national mortgage cost analysis. While Mortgage News found that closing costs for San Diego home loans averaged $3,986. While Orange County home loans reported closing costs of $4,459.
Bankrate.com reported that New York mortgage loans had the highest closing costs at $5,623 and Arkansas had the lowest, at $3,007.
The finance news company also said the financial reform law penalizes companies if they underestimate closing costs, so this year’s survey reporting a 36.6% increase could be a high estimate. Bankrate also reported that fees charged directly by mortgage lenders increased 22.8%. Fees charged by third parties such as title insurance companies and appraisers rose 47%.
