Michelle Frericks, Realtor®

Posts Tagged ‘closing costs’

Fla. closing costs increase in 2010 NEW YORK – Aug. 16, 2010 – A study released by Bankrate Inc. finds that the costs associated with buying a home are going up.

Bankrate’s 2010 Closing Costs Survey found that the average origination and title fees on a $200,000 mortgage this year totaled $3,741, up $1,009 from $2,732 in 2009.

In Florida, the news isn’t so bad. In 2009, closing costs on a $200,000 home sale averaged $3,368, rising $381 in 2010 to $3,987.

In the study’s geographical breakdown, New York leads the nation at an average closing cost fee of $5,623, with Texas, Utah, San Francisco, and Los Angeles rounding out the top five. Arkansas is the least expensive area with an average fee of $3,007, replacing Nevada, now No. 34, at the bottom of the list. The list has 52 slots, including Washington, D.C, and breaks California into a northern and southern division.

Florida, while still expensive for closing costs, improved its rank in 2010. In 2009, the state ranked at No. 3 for total closing costs; in 2010, it dropped to No. 12.

According to Bankrate.com, one of the reasons for a dramatic rise in average estimated closing costs is related to new regulations implemented in January 2010. When providing a potential borrower a Good Faith Estimate (GFE) of costs, regulations now require lenders to provide a Title and Closing Fee estimate within 10 percent of what the final cost will be; in previous years, estimates could fall lower on the spectrum without penalty for the lender.

“The big rise in average closing costs may scare some homebuyers, but it’s important to keep things in perspective,” says Greg McBride, CFA, senior financial analyst for Bankrate.com. “Increased regulation on lenders’ GFEs means more accurate estimates and less expenses popping up for consumers on the back end.”

For the study, researchers picked a ZIP code in some of the largest cities in each state and requested information on the closing costs for a $200,000 loan. They requested fees on a 30-year, fixed-rate mortgage for a borrower with a 20 percent downpayment and good credit to buy a single-family house. Bankrate’s survey includes lenders’ origination fees and title and settlement fees, but not taxes or prepaid items.

To read the study, go to: http://www.bankrate.com/finance/mortgages/2010-closing-costs

© 2010 Florida Realtors®

Great video that explains it all…

http://link.brightcove.com/services/player/bcpid1785312249?bclid=1740033302&bctid=61485517001

WASHINGTON – Feb. 1, 2010 – Fannie Mae, the largest provider of residential home funding in the United States, announced on Friday that it would start to pay closing costs for buyers of foreclosed homes in its inventory. Buyers of qualified properties will get up to 3.5 percent in closing costs or an equivalent amount for the purchase of new appliances.

Fannie wants to clear out the nearly 50,000 properties it has in inventory – listed on HomePath.com, the Web site created by Fannie Mae last year to sell the growing number of foreclosed homes. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010. Applicable properties can be found on HomePath.com, along with property descriptions, photographs, community and school information, and more.

In addition, some Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing, which offers qualified homebuyers the ability to purchase with as little as 3 percent down.

“Attracting qualified buyers to the market and reducing inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover,” Terry Edwards, executive vice president for credit portfolio management, said in a statement.

© 2010 Florida Realtors®