Buyers Face Higher Closing Costs

Buyers Face Higher Closing Costs

Rising mortgage rates aren't the only problem house hunters are facing. Closing costs for loan origination and other fees have increased 6 percent in the past year, according to a survey.

Borrowers with stellar credit who are making a 20 percent down payment are still forking over an average of $2,402 in closing costs on a $200,000 loan.

The main catalyst for the increase in closing costs is origination fees, which have jumped 8 percent in the past year. 

Rising interest rates often cause origination fees to go up, too. Lenders are also having to do more work underwriting loans.

Rising mortgage rates often mean lenders make less profit on their loans, so they try to make up for the loss with higher closing fees,Download Common Closing Costs for Buyers