Mortgage closing costs have risen on average six percent this year, from $2,264 to $2,402, based on a $200,000 loan with 20 percent down and good credit. Origination fees increased eight percent to $1,730, while third-party fees rose one percent to $672. With interest rates historically low in the past year, “Lenders really didn’t have to compete as much for business, they were free to charge higher closing cost fees,” said Polyana da Costa, senior mortgage analyst at Bankrate.com. She adds, now that mortgage rates are rising and fewer consumers are seeking loans, lenders may reduce closing costs to attract customers. As reported in CNNMoney.com, Hawaii has the highest closing costs at $2,919, while Wisconsin posted the lowest average at $2,119. MHProNews has learned more consumers shop for the best interest rate than for the best closing cost. Negotiate the closing, says da Costa.
