Posted by Bradford Miller Law, P.C.
Experienced in real estate law, landlord tenant law and estate planning
Located in Chicago, IL
Mortgage closing costs jump 40% in Illinois
From: http://chicagobreakingbusiness.com/2010/08/mortgage-closing-costs-jump-40-in-illinois.html
Average mortgage closing costs have jumped 40 percent in Illinois this year, according to an online survey by personal finance company Bankrate Inc. The origination and third-party fees on a $200,000 mortgage added up to $3,505 in the the 2010 survey, up from $2,486 a year ago.
Illinois was not alone in the dramatic rise. Nationally average closing costs increased 36 percent to $3,741. Bankrate said one of the reasons for the increase has to do with new regulations implemented in January. Lenders are now required to provide an estimate of title and closing fees within 10 percent of what the final cost will bd, or they’ll risk penalties. The regulations require more labor in getting a loan together.
Even with the increase, Illinois ranked 31st out of 50 states surveyed (plus Washington, D.C.) The most expensive state was New York with an average fee of $5,623. Last year, Illinois ranked 43rd.
Bankrate’s survey counts origination fees charged by the lender, as well as fees charged by third parties. The survey excludes property taxes, recording fees, homeowners insurance and prepaid items such as a partial month’s mortgage interest. It doesn’t include any discount points.
Comment: Illinois is still ranked as one of the lowest states for closing costs. I believe one of the main reasons behind that is the involvement of attorneys. A good attorney will look over all of the costs to make sure there are no mistakes and no frivilous fees. Buyers and Sellers need to hire a good attorney to look out for their interests.
