Nationwide: Interest Rates Still Down / Loan Fees Rising


CNN Money recently reported that nationwide, loan fees are up 6% over this time last year. The average cost of closing on a $200,000 loan is now at $2,539. And that doesn’t include prepaid items such as taxes and homeowners insurance, nor does it include Title Insurance or homeowner’s association fees.

Of the $1,539, approximately $662 goes for 3rd party services, such as the appraisal and credit report, putting the average bank fees at $1,877. Third party fees have remained stable, which means actual bank fees have risen approximately 9%.

In some states the increase is even higher. In Wisconsin, fees are up 28%, in New York 24%, and here in Texas 23%.

Backing the $662 out of the total brings bank fees to:

Wisconsin:          $2,146

New York:           $2,230

Texas:                   $2,384

Is that necessary? No, we at Homewood Mortgage don’t believe so. Our fees remain at a low $1,150 – less than half the state average.

So why have so many banks decided to raise their fees?

According to them, the blame goes to new federal guidelines that are designed to make borrowing safer. Lenders are now required to check a borrower’s credit history, income, and debt – something reputable lenders have being doing all along.

Some lenders say they have had to add additional services in order to comply with the new rules. Among those are a fraud check, an automated valuation model, and a last minute credit check. Do these steps cost an additional $155 per borrower?

What can you do to avoid excessive fees?

In Texas or Washington State, you can call the Mike Clover Group at Homewood Mortgage. Reach us by phone at 1-800-232-7409 or apply on line at

In all other states, take the time to get referrals from your real estate agent, attorney, or accountant. Then shop around. Meet with the recommended lenders and ask to see their closing costs. Lenders are required to give you a GFE – Good Faith Estimate – so you can compare those fees before committing to the loan.

So why have so many banks decided to raise their fees?

Because they can. Because far too many homebuyers don’t realize that fees vary from one lender to another. Thus, they fail to shop and they’ll pay the inflated fees without question.

If you’re in Texas or Washington, call today! 800-232-7409



Mike Clover

Mortgage Banker

Homewood Mortgage,LLC

O: 469.621.8484

C: 469.438.5587

F: 972.767.4370

18170 Dallas Parkway

Ste. 304

Dallas, TX 75287

NMLS# 234770


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