Closing fees high, don't blame the title agent

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Closing fees are a component of the home purchase or refinance.  This article from the New York Times is a tad misleading about these costs and where the blame, if that's the right word, lies.

 FOR some people, a major hurdle to homeownership is the closing costs that come on top of the required down payment. There are fees for everything from title searches to deed recordings, and if you happen to be buying in New York or New Jersey, you’ll find some of the highest costs in the country.

But these fees have been easing, according to a report released last week by Bankrate.com, which found that average closing costs, including mortgage origination fees, fell 7 percent nationwide from 2011 to 2012. In New York they fell 12 percent.

OK, so where do these high fees come from?  Not from third party suppliers such as title agencies, but from lenders and government officials.

Yet, the article continues,

Title insurance is the biggest cost, averaging around 1 percent of the loan balance. Mr. McBride suggested that borrowers shop around, eliciting good-faith estimates from a number of lenders.

Poppycock.  Rates in New Jersey are regulated as they are in New York and costs will be identical from title agent to title agent.  Companies such as ours survive based on the level of service we provide our clients to get buyers and borrowers to the closing table as safely and expeditiously as possible.  (Unless your title agent is owned by a bank or controlled by a real estate agency whose goal is to get you to the table no matter what.)

But the buyer/borrower cannot escape government charges.  The county recording fee for an average mortgage in New Jersey is $240!  And, in New York, you must add government mortgage taxes that add thousands to the cost of a home or mortgage.

The only place where the buyer/borrower can maneuver is with the lender.  There are three words to remember when applying for a loan, shop, shop and shop for the mortgage and if the loan officer cannot explain something to your satisfaction, run for the hills.

Read the full article.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Stephen's Title Agency, LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-227-4724 - Fax 973-556-1628

E-mail Stephenstitle AT comcast.net - www.stephenstitle.com

Not what it seems -you do need title insurance

The New York Times’ Mary Ann Haggerty writing writes “Paying for Title Insurance” in the Sunday real estate section.

She begins,

“THERE’S not much you can do about title insurance.”

“If you take out a mortgage to buy a home, you have to buy this specialized form of insurance. If you refinance a mortgage, you have to rebuy it. And comparison shopping may not save you much money, as premium rates throughout the New York area are regulated.”

And that’s true. What you are doing when you select a title agent is one thing, seeking the best service.

What is service? In our book, service is thoroughness in the examination of title, communication with the client, professionalism in the resolution of title issues (and they do exist,) and promptness in getting you to the closing table.

We look forward to serving you in the future.

Read the full article.

For your next title order
or if you have questions about what you see here, contact
Stephen M. Flatow, Esq.
Stephen's Title Agency, LLC
165 Passaic Avenue, Suite 101
Fairfield, NJ 07004
Tel 973-227-4724 - Fax 973-556-1628
E-mail Stephenstitle AT comcast.net - http://www.stephenstitle.com/

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