01/04/2024
In this post pandemic economy, (in the US and many other countries), real estate closing costs are one barrier to home ownership that have long been ignored in reform efforts. Today, I sent the following message to NY Governor Hochul on the subject.
"Dear Gov. Hochul,
I write to you today with a simple request that, if done, would greatly help new and prospective homeowners, now and in the future: lower NY's mandated closing costs on purchasing and refinancing mortgages.
As you can see from this table,
https://www.nar.realtor/magazine/real-estate-news/stub-for-148570
New York State has the third highest closing costs of all states in the country, and in dollar terms, they're almost double the closing vosts in our neighbor Conecticut. High closing costs are a not insignificant barrier to homeownership, and for homebuyers who plan to refinance their mortgage once interest rates decline, are a significant additional cost in refnancing. Changing NYS laws on closing costs so NY is more competitive would be a substantial benefit to first time homebuyers who need a mortgage (most firt time homebuyers) and would help those same homebuyers in refinancing ina few years once interest rates (and mortgage rates) drop.
As a personal example, I've been paying down my mortgage for several years, after having refinanced twice since my original purchase, and have declined suggestions that I refinance at least twice in the last 4 years with 4 words: New York closing costs. Mortgage companies understand this is a problem. The legislature and you can help. So, I'm asking, on behlaf of everyone who wants a home in NY, or wants to refinance their mortgage: please help.
Thanks."
Mortgage closing costs for a single-family property averaged $6,905 in 2021, a 13.4% annual increase. In some states, costs are much higher.