Consumers in the US who are taking advantage of low interest rates in the mortgage market may find themselves paying more in the end.
The costs of mortgage closing in the US has increased dramatically this year, with Texas having the second-highest average home financing fees in the country, according to a survey conducted by Bankrate.com.
According to the report, the increasing mortgage closing costs is likely due to tougher federal lending guidelines, which require mortgage lenders to be more honest and accurate when giving “good faith estimates” of expenses.
Greg McBride, a financial analyst at Bankrate.com, said that the tightened regulation “means more accurate estimates and less expenses popping up for consumers on the back end.”
On average, home borrowers in Texas spend more than $4,700 on mortgage closing items, including appraisals, title insurance and origination fees. This compares with $3,741 average mortgage closing costs in the US for a $200,000 mortgage. Arkansas has the most affordable costs of mortgage closing, at $3,007 for a $200,000 mortgage.