NY Closing Cost Scary?

Mortgage rates may be at or near record lows, but closing costs aren’t.
Mortgage closing costs rose for a second straight year, according to a survey released today by Bankrate.
The company said the average loan origination and title insurance fees on a $200,000 mortgage total $4,070, up 8.8 percent from a year ago.
And the average bank/mortgage lender charges roughly $1,614 in loan origination fees, up 10.3 percent from last year.

Loan origination fees include services such as underwriting and loan processing fees, along with loan officer or mortgage broker compensation for closing the loan.
Keep in mind that the person closing your loan can also get paid on the back-end, via yield spread premium, or at least a new form of it now that it’s been outlawed.
(How does a mortgage broker get paid?)

New York Most Expensive for Closing Costs

New York topped the survey again for the second straight year, with average closing costs of $6,183, followed by Texas at $4,944 and Utah at $4,906.
Mortgage closing costs were cheapest in Arkansas, with an average of just $3,378.







The survey is based on good faith estimates for a $200,000 purchase-money mortgage on a single-family home with a 20 percent down payment (80% loan-to-value).
It excludes taxes, homeowners insurance, homeowners association fees, prepaid interest and other prepaid items.