Average Closing Costs For A Mortgage
28 September 2006There’s a nice chart here that I ran across with the average closing costs on a home loan for a variety of different expenses. Keep in mind that they’re all assuming a standard $180,000 loan - but the people who did the survey went out and got good faith estimates from lots of different companies that do home loans. The chart lists the high cost, the low cost, the average, and the percentage of companies that charge each fee. For a $180,000 loan, you’d expect on average $3,350 in closing costs. Every lender will have a different set of charges, but there are some that plainly aren’t standard. For example, a commitment fee - only 2% of lenders charged this. Only 8% require pest inspections. Those kind of charges might be a sign you should check out someplace else.
It’s also important to know that this average is skewed upward by the crooks. The highest overall set of charges was $11,395 - 6.3% of the loan amount! The best was a little over a thousand dollars.
Also remember that these numbers are VERY useful for negotiation purposes. Point them out to your lender and ask why the heck they’re charging so much compared to everyone else. You might be able to get the closing costs knocked down.
Discuss this on the Free the Drones forums.
One Response to “Average Closing Costs For A Mortgage”
October 4th, 2006 at 10:20 am
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