Mortgage closing costs drop nationwide
SCOTTSDALE, Ariz. - Homebuyers are paying less in closing costs.
As mortgage rates have lowered, closing costs have dropped 7 percent in the past year.
"I've been doing this 19 years," said Valley mortgage expert Dean Wegner. "I've never seen rates this low, and closing costs this low, in the history of my career."
Bankrate.com said the average closing cost nationwide is just over $3,700. Arizona is a bit higher at $3,850, ranking 16th-highest in the nation. It was 19th last year.
"Arizona is a very transient state," said Wegner. "It's not as 'corporate' as some of the other states. We have a lot of people moving in and moving out. We were the hardest hit in the recession, and we have all of those people getting back into the game. As a result, we have lower loan amounts, which always means higher closing costs."
Wegner said bank rebates are the reason for the lower closing costs around the country.
"As mortgage rates are going lower, the rebates are getting larger," he said. "What banks are doing is that they are passing along those rebates to the consumer, and the result is less closing costs and sometimes no closing costs."
New York has the most expensive closing costs in the country at just over $5,400. Missouri has the lowest at a little over $3,000.
Bob McClay, Reporter