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Mortgage closing costs fell 7% for homebuyers

August 21, 2012  |  by John Heithaus

Les Christie @ CNN Money reports (HERE, no subscription required) reports that recently enacted Federal regulations have had a very beneficial effect by lowering closing costs by several hundreds of dollars.

Since home acquisition costs are an important part of housing affordability, this comes as good news.

According to Christie “The decline can be attributed to new regulations that require lenders to be more accurate when estimating closing costs for borrowers, said Greg McBride, Bankrate’s senior financial analyst. The regulation, which was put in place two years ago as part of the Real Estate Settlement Practices Act requires lenders to provide a “good faith estimate” of third-party fees that is within 10% of the actual amount the buyer will pay. ‘The big drop in third-party fees indicates the lenders are doing a better job at estimating what the costs will be,’ said McBride.”

Check out the article for more and be sure to spread the good news!

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