Homebuyers are still landing great rates on mortgages. But thanks to tighter lending regulations, they are paying a lot more when it comes time to close on the loan.
Nationwide, the average cost of closing on a $200,000 loan with a 20% down payment hit $2,539 in June, a 6% increase from a year earlier, according to Bankrate.com.
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PMI (primary mortgage insurance) that nasty extra cost per month for any less than 20% down is also through the roof. The last couple of times I looked into refinance the vendor promised a great savings because of knocking the interest down by 1 or 2 points but once I got to see the small print (always check that out BEFORE closing) the PMI cost increase just about cancelled the interest money saving. I told them to forget it. Also beware the "Quick.." mortgage loan company, you know who I mean, they are neither quick nor honest from my experience.
ReplyDeleteBankrate is clueless about the increasing settlement costs of non-lender charges. Dodd-Frank is crippling the lending industry - who will protect us from the "Consumer Financial Ptotection Bureau" ?
ReplyDeleteI think if you have a CS above 720 and show good history, the whole PMI should be tossed. It is a scam and I detest paying it each month.
ReplyDeleteTotally agreed 10:36, it is just greed/legal theft by the mortgage companies/banks.
ReplyDeletePointless to refi.
ReplyDelete