Review of Meg Handley‘s: ”Average Closing Costs Dip Nationwide.” (Handley 2012). Average Closing Costs Dip Nationwide Retrieved from: http://www.usnews.com/news/blogs/home-front/2012/08/06/average-closing-costs-dip-nationwide
Am I the only person who realizes how fast this year is going? Labor Day Weekend starts today (last weekend of the Summer). Next month is Halloween, the month after is Thanksgiving and the month after that is Christmas and New Year’s Eve. Good news is, for the first time in decades, mortgage rates are at historic lows. Another cost seems to be lower than usual. It appears that closing costs are also reducing. This is great because the more you can slice off of the entire selling price of the house, the better chances to get the house sold.
“Closing costs dropped 7 percent over the past year to an average of $3,754, according to Bankrate.com. Title insurance and other third-party fees fell 12 percent from 2011, while mortgage origination fees declined about 1 percent” (Handley).
All of this seems like a nice recipe for buyers but unfortunately, the inventory for homes for sale have been low. Maybe with the home prices going up, homeowners will be more motivated to put a for sale sign up. We’ll also see the market flooded with foreclosures soon. If you are in the market for a foreclosure, then you can get the most savings. You’ll save on the total price for the house you are purchasing, you’ll save by having a low interest rate and finally, you’ll save on closing costs.
The last ingredient in the recipe is getting banks to loan the money to future home buyers. The best work around for that is either paying for a house cash or having a hefty down payment. Either way, the more houses get sold, the better our economy will get. Lets hope that with lower closing costs we will be a bit closer to pre2006.
If you are in the market for a house, now is the time to purchase. Imagine all of the money you can save by purchasing a new home. Do not let this opportunity pass you by. These opportunities only come every so often. If you are a realtor, do not forget to tell your clients the good news about closing costs being lower. They might not have had the money for a down payment because of the closing cost. Now that the closing cost should be lower, they might have enough money saved for the down payment.
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To read the entire featured article please visit: http://www.usnews.com/news/blogs/home-front/2012/08/06/average-closing-costs-dip-nationwide