Closing Costs Rising

On an average of 36.6% closing costs have risen over the last year according to the 2010 mortgage fee survey from Bankrate.com.  Bankrate, which gets its survey data from online Good Faith Estimate (GFE) forms, say the increase may be due to the new GFE form and changes to the Real Estate Settlement Procedures Act. 

Lenders are penalized now for lowballing fees and the numbers may be more accurate than those reported in the past. 

The three most expense states for closing costs on a $200,000 purchase are New York (avg. $5,623); Texas (avg. $4,708); and Utah (avg. $4,605) according to Bankrate.

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1/3 of Americans Unlikely to Qualify for a Mortgage Today

According to an analysis of more than 25,000 loan quotes and purchase request on Zillow Mortgage Marketplace during the first half of September; almost 1/3 of Americans are unlikely to qualify for a mortgage because their credit scores are too low. 

They found that 29.3% of borrowers have a credit score less than 620.  The lowest rates went to 47% of borrowers with excellent credit scores of 720 or above. 

Zillow Mortgage Marketplace quoted that during this period, borrowers with excellent scores got an average rate of 4.3% for conventional 30 year mortgages.  Mid range borrowers with credit scores between 620 and 719 received rates between 4.73% and 4.44%.  Those with credit scores below 620 received too few loans to calculate the interest rates received. 

For each 20-point credit score increase, the average annual percentage rate (APR) declines 0.12%.

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