Mortgage Junk Fees Increase by $2K
- Jan 5
- 2 min read
In recent years, not only have home prices, interest rates, and loan amounts been on the rise, but so has the cost of purchasing real estate, as reported by the CFPB. In 2022, the average homebuyer incurred approximately $6,000 in closing costs. These traditional expenses include discount points, title insurance, appraisal, credit report, and other fees. This represents an increase of over $1,100 compared to the 2021 average. The bad news is that the costs are not going down anytime soon. The government is increasingly concerned that escalating fees associated with home purchases may be hindering homeownership rates and affecting affordability. What can be done to address these rising costs? The Mortgage Jinn offers solutions.
First, it is essential to recognize that the mortgage industry is highly dynamic. Numerous factors contribute to the production of a mortgage loan, with the estimated cost per lender, per loan, currently at $11,600. This figure marks an increase of over 200% over the past 16 years. As we look towards 2025, it is evident that higher costs are likely to persist, with major lenders such as Wells Fargo, PNC, and Bank of America raising their credit report, processing, and origination fees. Next, it is important to understand that its not all about the rate. The fees associated with the rate are crucial as some lenders will offer below market rates with above market costs. Lean on the Mortgage Jinn to help you understand what are the exact costs of doing business with said lender. Last, the Mortgage Jinn is committed to assisting you in confirming if the schedule of fees are customary or excessive and predatory. The Jinn has done all the homework on the current fee schedules for the majority of lenders in the market. A partnership with the Mortgage Jinn helps ensure you get the very best deal available.
For more information, please read the article below:
Comments