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Average Selected Closing Fees and Charges

 

Average Selected Closing Fees and Charges
for Home Mortgages

First Half-2006

Based on a National Survey of 150+ Lenders

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These are actual average fees charged for some of the most prevalent closing costs on first mortgages. HSH Associates compiles these figures as part of a survey conducted on a regular basis, with full survey results are available on a semi-annual basis. This in no way represents all of the fees a borrower will be expected to pay, but are representative of some of the more common charges found in the origination of a residential first mortgage loan.

For industry participants, HSH makes a much more comprehensive survey available for just $450.

If you are curious about the wide variety of fees associated with a mortgage, ask your lender for a copy of the "Good Faith Estimate of Closing Costs" (aka GFE); which itemizes fees commonly charged in your area. Keep in mind, though, the GFE is only an estimate. The actual total fees you'll have paid will be itemized on a document called a HUD-1 which you will get at closing. In fact, if you're refinancing, it's a good idea to review your old HUD-1 to get a very close estimate of your new loan's charges.

To view a sample of the HUD-1 document click here.

It's also instructive to know that that not all of the the out-of-pocket expenses you'll pay to get a mortgage loan are "closing costs". A sizable portion of your total out-of-pocket expenditures can be local and state realty and mortgage taxes; even "no closing cost" loans will have taxes which need to be paid. It's also popular today to talk about "lender fees" (as in "No Lender Fees!") but this doesn't mean that there are no charges to pay, you'll still encounter "third party" fees for a range of services. It's also common to pay some fees before the loan actually closes on settlement day. In this case, fees are said to have been "paid outside of closing" ("POC").

In June 2006, 79% of the lenders in our survey charged an up-front appraisal fee. The average amount charged was $331.

In June 2005, 75.7% of lenders surveyed charged an appraisal fee. The average amount charged was $318.

In December 2004, 78% of lenders surveyed charged an appraisal fee. The average amount charged was $315.

In June 2004, 77% of lenders surveyed charged an appraisal fee. The average amount charged was $314.

In December 2003, 81.1% of lenders surveyed charged an appraisal fee. The average amount charged was $310.

In June 2003, 85.4% of lenders surveyed charged an appraisal fee. The average amount charged was $309.

In September 2002, 81.4% of lenders surveyed charged an appraisal fee. The average amount charged was $309.

In February 2002, 80.6% of lenders surveyed this fee; the average amount was $310.

In September 2001, 86.1% of lenders surveyed this fee; the average amount was $312.

In September 2000, 81.4% of lenders charged this fee; the average amount was $305.

Credit Report:

In June 2006, our survey found that 67% of lenders charged a fee to pull a borrower's credit report. The average cost was $33.

In June 2005, 67% of lenders levied a credit report fee, with the average reported amount of $25.

In December 2004, 72% of lenders levied a credit report fee, with the average reported amount of $26.

In June 2004, 71% of lenders levied a credit report fee, with the average reported amount of $27.

In December 2003, 75.0% of lenders levied a credit report fee, with the average reported amount of $28.

In June 2003, 73.8% of lenders levied a credit report fee, with the average reported amount of $31.

In September 2002, 72.7% of lenders levied a credit report fee, with the average reported amount of $31.

In February 2002, 71.2% of lenders levied a credit report fee. The average amount was $32.

In September 2001, 73.8% of lenders levied a credit report fee. The average amount was $34.

In September 2000, 76.1% of lenders levied a credit-report fee. The average amount was $37.

Application Fee:

The vast majority of lenders charge an application fee (or, specifically, a fee at the time of application); in some areas, it may consist of the credit report and appraisal fees. In June 2006, 40.1% of mortgage lenders specifically charged an application fee that is NOT for the credit report and appraisal. The average amount they charged was $252

In June 2005, 39.9% of the lenders in our survey charged an application fee. The average amount was $261.

In December 2004, 40.5% of lenders in our survey charged an application fee. The average amount was $275.

In June 2004, 41.6% of mortgage lenders specifically charged such a fee, at an average cost of $285.

In December 2003, 38.4% of mortgage lenders specifically charged such a fee, at an average cost of $272.

In June 2003, 36.0% of mortgage lenders specifically charged such a fee, at an average cost of $264.

In September 2002, 38.5% of mortgage lenders specifically charged such a fee, at an average cost of $264.

In February 2002, 39.6% of mortgage lenders specifically charged such a fee, at an average cost of $292.

In September 2001, 27.7% of mortgage lenders charged this fee. The average cost was $274.

In September 2000, 34.1% of mortgage lenders charged this fee. The average cost was $288.

Document Preparation Fee:

In our June 2006 survey, 46.5% of the lenders charged a doc prep fee. The average amount charged was $217.

In June 2005, 49.1% of the lenders charged a Doc Prep fee, at an average $215.

In December 2004, 56.6% of the lenders charged a Doc Prep fee, at an average $204.

In June 2004, 52.4% of lenders in our survey charged one, with an average cost of $203.

In December 2003, 50% of lenders in our survey charged one, with an average cost of $206.

In June 2003, 53.7% of lenders in our survey charged one, with an average cost of $195.

In September 2002, 63.4% of lenders in our survey charged one, with an average cost of $195.

In February 2002, 59.7% of lenders in our survey charged one, with an average cost of $182.

In September 2001, 64.8% of lenders in our survey charged one, with an average cost of $201.

In September 2000, 66% of lenders in our survey charged one, with an average cost of $186.

Flood Certification:

In June 2006, 93.6% of lenders collected a fee for a flood certification on the borrower's property. The average amount charged was $18.

 

In June 2005, 89.6% of lenders specifically charged this fee, and it costs an average of $18.

In December 2004, 92.5% of lenders specifically charged this fee, and it costs an average of $18.

In June 2004, 91.4% of lenders charged a "flood cert" fee averaging $17.

In December 2003, 92.1% of lenders charged a "flood cert" fee averaging $18.

In June 2003, 92.7% of lenders charged a "flood cert" fee averaging $18.

In February 2002, 92.5% of lenders charged a "flood cert" fee averaging $18.

In February 2002, 93.5% of lenders charged a "flood cert" fee averaging $18.

In September 2001, 95.1% of lenders charged a "flood cert" fee averaging $18.

In September 2000, 95.0% of lenders charged a "flood cert" fee averaging $18.


There are potentially dozens of of fees charged in conjunction with the granting of a mortgage loan. In recent years, there has been a movement to allow for the "bundling" of fees into a single dollar amount, discussions of more explicit disclosure earlier on in the mortgage process (such as at the time of application) and other possible reforms. At the moment, there are open discussions about now to make changes to the Real Estate Settlement Procedures Act (RESPA) that will better serve the consumer and help to make the process more efficient.

This survey is conducted quarterly or semi-annually by HSH Associates, Financial Publishers, Pompton Plains NJ and is Copyright © 2006 by HSH Associates, Financial Publishers. All rights reserved. It may be freely distributed in hardcopy in its entirety, providing that full source attribution is included.

The full Ancillary Fees survey reports on over 20 representative fees charged. Over 150 offices of major lenders (up to 500 offices in some reports) are surveyed in major metropolitan areas in 24 states.

For a complete list of the fees surveyed, custom fee surveys or more info, please see our lender catalog.

 

 

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