Texas Home-Buyers Pay Highest Closing Costs in Country, Survey Says

Categories: Housing

rrealestatedallas123.jpg
Ashley Bischoff
And you thought buying that Manhattan condo was rough.

Texas has the highest processing fees for home loans in the nation, according to a recent Bankrate report, but don't bother asking why. The banks won't tell you. The report zeroed in on closing costs -- the combination fees charged by lenders for processing plus third-party fees for things like appraisals and credit checks. For a typical $200,000 home loan, closing fees averaged over $3,000 in the state.

"We've been doing the survey for 12 years and Texas is usually in the top five," says Holden Lewis, a spokesman for Bankrate. Lewis is a Dallas native but is based in Florida now. "And it's kind of a mystery to me. I don't know why."

The report traditionally measures factors such as appraisal, broker, application and inspection fees. In the annual study, Bankrate collects data from the largest city in each state, in our case Houston, as numbers don't vary much between larger cities. For the Texas home-buying experience, what sucks in Houston typically sucks in Dallas.

One possible explanation is that Texans simply don't shop for banks as much as residents of other states, but overall, the first rule of banks is that they don't talk about banks. "The bottom line is, we just don't know why costs are so high. They don't talk about pricing to outsiders," says Lewis. "Lenders are really tight-lipped about pricing. You question why they're charging more in Texas than Connecticut, the answer is that they don't talk about pricing."

So if you're kicking yourself, wondering why you moved from New York to Dallas to escape high home costs -- New York placed third, by the way -- we really have no words of comfort for you. "Growing up there and seeing that Texas is always toward the top, I feel a sense of impatience. Like, why do they stand for it? I don't know if there's anything that can be done," says Lewis. "Is it something that can be addressed in a regulatory manner? Frankly I doubt that the political climate is such that anyone would want to address it. People would say that you can't fault lenders for making a profit, and that would be the winning argument."


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64 comments
MikeWestEast
MikeWestEast

Has anyone actually been paid off on a claim against title insurance? 

CheeryBitch
CheeryBitch

From someone with the extensive knowledge of the mortgage industry including nearly 20 years in the business (all national), Texas is in the top five but Florida and New York are the higher because of their higher mortgage taxes, among other reasons. Plus, this survey is from Bankrate, they're not reliable and their data isn't worth shit.

lolotehe
lolotehe

Livefyre needs the ability to collapse threads. That would be awesome.

mavdog
mavdog topcommenter

Some independent research:

Closing costs for a $750,000 home purchase estimate via Bof A website.

Dallas=$17,194. Title insurance=$4,476, Title endorsement=$249,

Los Angeles=$15,321. Title Insurance=$1,767, title endorsement=$26,

Chicago=$23,330  Title insurance=$2,625, Title endorsement=$120, City tax stamp=$5,621

Brooklyn=$26,174 Title insurance=$2,724, Title endorsement=$297, State tax stamp=$11,520

Texas Title Insurance costs are very high compared to other states, but the lack of a tax payment lessens the closing costs considerably.

The Texas Title industry has some very, very good lobbyist working on their behalf...

Myrna.Minkoff-Katz
Myrna.Minkoff-Katz topcommenter

Bottom line?  Stop the kvetching.  Median house price in Dallas, TX: $224,300


Brooklyn, NY: $502,400 

Steeve
Steeve

Here's what's up, dicks:


3% is indeed too much.  Need to cut that in half.


And the real crime is that once a Texas homeowner does a cash-out refinance, they are no longer eligible for a simple rate/term refinance AND they can no longer use their VA benefit to refinance to a low rate with no PMI>


This is because the stupid fucking jackoffs in Austin, such as Dan Branch, don't give a fuck about you.

ozonelarryb
ozonelarryb

Banks gotta cover those fines, free toasters, and pals' services somehow.

Bobtex
Bobtex

Title insurance premiums are fixed by the State of Texas, and we have probably the highest rates in the country.  Seller pays for title insurance to protect the buyer, and buyer pays for title insurance to protect the lender.  The policies have so many exclusions that they almost never pay off.  If the State of Texas would switch to competitive title insurance rates, and if sellers and buyers would learn to shop for policies, those high premiums would come down. 

nanjikush
nanjikush

there is no standard its just a way to force fee's on borrowers, since lo

's cant make the higher % cut Realtors steal for doing nothing in the finance field, these fee's are cranked up to help recover what LO's were charging back in 98-2007

Myrna.Minkoff-Katz
Myrna.Minkoff-Katz topcommenter

@mavdog Thank you for the research.  My point below is that in spite of all the many costs associated with buying a house, Dallas has it very good when it comes to what you get for your dollar compared to the grossly inflated costs for housing on the Coasts.

Chattering_Monkey
Chattering_Monkey

@Myrna.Minkoff-Katz hey cat, do some research like we did.  FORBES


Dallas

t a Glance
  • Metro Population: 4,534,000
  • Major Industries: Technology, Financial services, Defense
  • Gross Metro Product: $280.3 B
  • Median Household Income:$58,431
  • Median Home Price: $188,000
  • Unemployment: 5.2%
  • Job Growth (2013): 2.6%
  • Cost of Living: 6.9% above nat'l avg
  • College Attainment: 33.4%
  • Net Migration (2013): 9,910
NY
At a Glance
  • Metro Population: 11,855,900
  • Major Industries: Financial services, Media, Communications, Technology
  • Gross Metro Product: $836.9 B
  • Median Household Income:$60,506
  • Median Home Price: $462,500
  • Unemployment: 7.5%
  • Job Growth (2013): 1.8%
  • Cost of Living: 30.2% above nat'l avg
  • College Attainment: 36.5%
  • Net Migration (2013): 1,330

CitzenKim
CitzenKim

@Steeve I suppose whoever came up with penalties incurred by doing a cash-out refinance, which essentially put a scarlet mark of shame on the homeowner until they sell their home, at least offered up some rationale, as BS as it may be.  What are the reasons?

Montemalone
Montemalone topcommenter

@ozonelarryb

No bank ever gave me a toaster.

I got mine from the secret meetings of the gay conspiracy.

ThePosterFormerlyKnownasPaul
ThePosterFormerlyKnownasPaul topcommenter

@Bobtex 

If I were to get a do over in life, I would become an attorney and set up a title company and do nothing but title opinions.

TheCredibleHulk
TheCredibleHulk topcommenter

@Bobtex

Another aspect is that most people have no idea that there is even a choice when it comes to financing a home.

I buy eggs all of the time, and there are any number of places for me to go and purchase them and their price is boldly advertised everywhere they are offered. Comparison shopping is easy. That is not the case with loan / title services.

Most people are so flustered by the process that they put their trust in their realtor and loan officer, cross their fingers that they'll be approved, hope for the best and show up at the closing table with whatever amount of cash they are directed to bring.

ScottsMerkin
ScottsMerkin topcommenter

@Myrna.Minkoff-Katz @mavdog I dont think anyone was denying that point.  Pretty much everyone agrees that DFW is a wonderful place to live and raise a family due to its cost of living compared to the coasts and the income you can make here. a while back  I looked at the possibility of moving back to KC but the pay was less and the cost of living was higher.  My money could go much farther here

CheeryBitch
CheeryBitch

@TheCredibleHulk Yep and sometimes those people are the ones telling a homebuyer exactly what they what to hear and they go with them even though it costs them a pretty penny.


A home is the biggest purchase anyone will ever make, yet they put more research into what cell phone, K-cup machine or Garmin watch they want to buy.

mavdog
mavdog topcommenter

@ScottsMerkin

you failed to mention that moving to KC would put you smack dab in the middle of too many insufferable KU fans....at least here the Sooner, Longhorn and Aggie fans keep each other in balance.

Chattering_Monkey
Chattering_Monkey

@nanjikush @Chattering_Monkey so they shouldnt get 3% for selling a house?  What should they get?  And why are you so pissy about it?  Were you a shitty Realtor who never made money or just another asshole broker.  Go make some curry fuckhead

ScottsMerkin
ScottsMerkin topcommenter

@ScottsMerkin ah but I would be right at home, momma, uncle and cousins all KU grads, I lived in Shawnee KS till I was 10, KU basketball is what I was raised on.  Still remember playing Pinball at a friends house in 88 when they beat OU for the national championship, and my friends dad drove us downtown so we could experience the celebration.  My mom still has my Manning 25 jersey in a keepsake box.  My original name here on the SPortatorium was DallasJhawk until the Scott hairpiece on the Jerry World bathroom thread started, and thats how I became ScottsMerkin

nanjikush
nanjikush

@Chattering_Monkey so my point proven you cannot answer what part of financing a realtor does.... You must be a graduate of the Prime Prep school... go fix your anger issues little nasty ebola monkey

mavdog
mavdog topcommenter

@ScottsMerkin 

oh no, should never have brought up KU. now you're going to go all Rock Chalk on us...at least keep it in check until bball season starts. you have nothing till then.

Montemalone
Montemalone topcommenter

@nanjikush @Chattering_Monkey

Let me explain:

Realtors don't have anything at all to do with financing. They're not licensed to provide financing, 

Realtors list, show, and negotiate contracts for the sale (sometimes lease) of property. 

Some people pay cash. They don't need financing. They don't pay lender fees. They're not required to get an appraisal. They're not required to get an inspection. Hell, they're not even required to get title insurance. 


Chattering_Monkey
Chattering_Monkey

@nanjikush @Chattering_Monkey you didnt answer my question,  What should they get?  I mean they put in most of the work and effort with  purchaser. And again why are you pissy about it?  Oh yeah the realtor shows up at closing and makes sure the paperwork hasnt been fucked by some shit head who hates his life as he sits their watching the purchaser sign his life away

ScottsMerkin
ScottsMerkin topcommenter

@mavdog no problem. i know my place in the college sports world.  Im not too insufferable, although Myrna may disagree.  

nanjikush
nanjikush

@Montemalone Bingo! A straight up honest response unlike the diseased monkey....

 Realtors don't have anything at all to do with financing. They're not licensed to provide financing, but why are they always putting their financial 2 cents in on EVERY single deal in DFW... the greed is still hot as is was in early 2000

my office is next to a realtor shop and I over hear more then needed daily coming from realtors telling people how much this that etc etc. And this is a very well known, high end/volume realtor office. Not like the 89k deals where the ebola monkey resides & rents in ;)

Chattering_Monkey
Chattering_Monkey

@Montemalone Guess Nanji feels like he is getting raped at closing or some such.  Guess he could negotiate himself and not use any lenders or financing.  Then again, in this market, by the time the sign is in the yard, most likely there is already an offer on the table 

ScottsMerkin
ScottsMerkin topcommenter

@Montemalone Im still trying to figure out what got up Nanjikush's ass.  Why does he hate Realtors so much?  Monkey boy was on to something

nanjikush
nanjikush

@Chattering_Monkey @nanjikush oh my goodness such hard work shows up at closings (once again no financial input) shows a home, collects a contract or earnest check, yes such hard work lmao  Ebola monkey why are you so angry here?

mavdog
mavdog topcommenter

@ScottsMerkin 

she would definitely be more of a K State fan than a KU fan, being they are the wildcats...

fishingblues
fishingblues topcommenter

@Myrna.Minkoff-Katz @Chattering_Monkey


Wow kitty, aren't you a sweet child. 

Chattering_Monkey
Chattering_Monkey

@nanjikush @Montemalone and if you want to talk about rent vs owning we can go there.  You know all those people who got shitty loans from Countrywide and Citi and BOA and now either have so much negative equity they cant afford to sell or lost their house outright, yeah renters came out way ahead in that housing debacle.  

Chattering_Monkey
Chattering_Monkey

@nanjikush @Montemalone Realtors know the market, they know what's going on in the finance world, they know the brokers, they know where the best deals on financing are, and if they dont, well they dont belong in the business or wont last very long.  Again, what is your stake in this, why are you so pissy about it?

TheCredibleHulk
TheCredibleHulk topcommenter

@ScottsMerkin @Montemalone

My guess would be frustrated potential homebuyer.


It's a jungle out there!

nanjikush
nanjikush

@Chattering_Monkey @nanjikush @Montemalone if you would have read what I typed instead of running your Prime Prep educated mouth you might have seen where I stated my office is next to a realtors office where I over hear realtors giving out financial advice....  no one is pissy, but you little ebola monkey

nanjikush
nanjikush

@Chattering_Monkey the ebola monkey is like files on his own ass, they just never give up...  

 you must playing the little mans, get the last word in game...

Chattering_Monkey
Chattering_Monkey

@nanjikush @Chattering_Monkey @Montemalone so based on what you hear outside your office, Realtors dont deserve to be paid.  Thats a pretty strong opinion for someone who has no idea what actually happens outside of what he heard on a sidewalk in front of his office

TheCredibleHulk
TheCredibleHulk topcommenter

@nanjikush @Chattering_Monkey @Montemalone

So what? I hear that priests give out matrimonial advice, too.

Chattering_Monkey
Chattering_Monkey

@nanjikush @Chattering_Monkey you just being a pussy because you wont reveal what your actual problem is with Realtors!  You want them to work for free?  C'mon just say it.  Your 500 credit rating couldnt get you approved for the home you wanted so your fucking pissed at the world.

nanjikush
nanjikush

@Chattering_Monkey @nanjikush @Montemalone who said anything about what a person is to be paid? If you're in the business you know exactly what i'm referring to..  so yes based on what I hear for the last 9 years in my office with the realtor office next door I do know what i'm talking about... don't become butt hurt so easily, but I do understand your hate with the Prime Prep education you've worked so diligently to achieve... It clearly reflects in your replies.... get lost ebola monkey

Chattering_Monkey
Chattering_Monkey

@nanjikush you said "Realtors steal for doing nothing in the finance field"  They do far more than nothing and finance is just 1 portion of the home buying process and a Realtor is being paid for that whole process.  You'd do good to listen to financial advice from some realtors.  The couple I know, do very well with money and investments and they are not spending much time at the office


You are the dumbass

nanjikush
nanjikush

@Chattering_Monkey @nanjikush if they are giving financial advice telling whom what to price up & fee's to add in so their commissions are maxed then yes that is stealing....  

You're so far up that couples ass no wonder you smell like shit

Chattering_Monkey
Chattering_Monkey

@nanjikush @Chattering_Monkey uh no, dumbass, that is not happening.  you dont know much at all about it.  And if your agent wont tell you that you probably shouldnt buy that overpriced house bc nothing in the neighborhood has sold anywhere near that, they are doing you a disservice.  And yeah, that is financial advice.   I dont understand why you think Realtors are out to get you?  

nanjikush
nanjikush

@Chattering_Monkey @nanjikush where did anyone say Realtors were out to get me? I for one have enough income to never need a realtor, where did I say over priced house? Once again your Prime Prep education showing its true colors....

Please do yourself a favor an don't breed

Chattering_Monkey
Chattering_Monkey

@nanjikush @Chattering_Monkey You act like it first of all.  secondly I was giving an example of financial advice a realtor can give you. Prime Prep wasnt even around when I went to school, You are one ignorant mother fucker.  Now you are just talking yourself in circles.  

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