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Closing Costs Might Impact Real Estate Investing in Texas



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By : John Cutts    99 or more times read
People who are into real estate investing and home buyers who plan on taking advantage of the low interest rates for mortgage loans might find themselves spending more come closing time, particularly if they are conducting their investment business and purchasing activities in Texas.

Some home buyers might think that with record low mortgage interest rates and thousands of Dallas cheap houses to choose from, home buying would be a beneficial activity indeed. However, they should prepare to factor in the increasing rates of closing fees in the state as Texas has been ranked second nationwide by Bankrate.com when it comes to house financing fees.

Although there are big numbers of Texas cheap houses available for sale, buyers should take note that only New York has a higher average of housing loan closing fees than the state of Texas. In addition, the latter has also been ranked among the top regions in terms of highest property taxes and home insurance costs.

For those who are into real estate investing or those who plan to purchase a home in Texas, they will be expected to spend an average of $4,700 for housing loan closing fees, including origination costs, title insurance and appraisal fees. In comparison, average closing fees in the national level is at $3,741 for a mortgage worth $200,000.

According to state housing market data, investors who purchase foreclosure properties for sale have experienced rising closing costs by an average of 18% since 2008 when Bankrate.com last conducted a similar study. The finance information firm derived closing costs by using data from 30-year housing loans for single family dwellings wherein borrowers with good credit standings made a down payment of 20%.

The information company reported that housing closing costs all around the country have risen by over 36% in 2010 compared with a year ago. The firm also reported that the state with the most affordable average closing cost is Arkansas, which requires around $3,007 of closing fees for a mortgage worth $200,000.

Analysts from Bankrate.com believe that home buyers and real estate investing companies and individuals are paying higher closing fees this year due to tighter lending rules, which means that mortgage firms need to have more accuracy in terms of estimating expenses.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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