Higher Closing Cost Coming Your Way

Loans
Loans (Photo credit: zingbot)

Not only are the home prices on the rise but so are the mortgage interest rates & closing cost on the rise..this definitely will hit first time buyers.

Surveys reveal a home that cost $200,000 will cost about $2,400 in origination and third-arty fees, that is a 6 percent cost more than last year.  Loan originators, who lost certain fees under the new federal mortgage reform made up for some of it by raising cost in closing fees..  Lenders are saying the cost of implementing and complying with the new rules comes with a hefty cost even thou they don’t come into play until 2014, but lenders are preparing in advance so they don’t get caught up in the Bureau’s web of enforcement.

As rates and prices rise, that could change as the market gets tighter and more competitive, but for now lenders are getting in while the getting is good!

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