Average Massachusetts Closing Costs 2011
“What are my closing costs going to be?” is a very common question for homebuyers to ask, whether first timers or those who have bought before. According to a survey by bankrate.com, closing costs in Massachusetts on a $200,000 loan average $4,244 or 2.1%. That is a 5.2% increase over 2010 costs. The 2011 national average of $4,070 has gone up 8.8% from 2010 when the average closing costs totaled $3,741. New York has the highest costs, while Massachusetts is the 15th costliest state.
It should be noted that the bankrate.com survey does not include taxes and government fees such as documentary stamps, which can differ between cities and counties. It also omits escrow and prepaid items, which will vary by what day in the month and what month in the year you have your closing.
Many lenders and mortgage professionals claim that origination fees have increased because of stricter mortgage regulations that the government has implemented in the last two years.
“New regulations require more staffing and cost more money,” says Jason Auerbach, division manager of First Choice Loan Services in New York City.
Auerbach says some of the “new” regulations — which vary from having to take extra steps to verify a borrower’s income and employment to disclosure forms and licensing-related matters — have been in place for a couple of years already, but the mortgage industry takes them more seriously now. New forms and regulations that are still in discussion are influencing lenders already.
Fees will vary from lender to lender. While some of the items included in your closing costs, such as appraisals and credit reports, aren’t really negotiable, origination fees can vary widely. It’s important to compare good faith estimates, or GFEs, from each bank or mortgage broker.
And if you need suggestions for great mortgage brokers, please let me know.
Beth is a practicing Realtor and Interactive Marketing Manager at Barrett & Company Real Estate in Concord, Massachusetts. She spends her days coaching home buyers and sellers through the intricacies of buying and selling property and training her fellow agents on the importance of and benefits to an online presence, most recently on Google+! Read more of her work on the Barrett Massachusetts real estate blog.
