What is the purpose of the NYS fees?
NYS is worst place to close a mortgage
It costs more to close a mortgage in New York than in any other state, according to a study released Monday by Bankrate.com.
A $200,000 loan for a borrower with good credit would carry additional fees of $5,623 in New York, based on Bankrate.com's analysis. No other state was above $4,750.
Texas is the second-most-expensive state for mortgage closing costs, followed by Utah, California and Alaska.
Arkansas is the least expensive state for closing costs, with North Carolina, Iowa, Montana and Wisconsin close behind. Additional charges for a $200,000 loan in Arkansas would total $3,007, according to Bankrate.com.
New York's additional charges of $5,623 included $3,608 in title and closing costs and $2,015 in origination fees.
from Business First
What is the purpose of the NYS fees?
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I have no clue!
I was hoping some of the real estate people on the board could add their 2 cents on why it's so much higher here than anywhere else.
Yeah, when I moved up here from down South I was shocked.. firstly every transaction must include legal counsel, the mortgage tax is just another tax.
But seriously is anyone body really surprised?
Thank/ask your public service unions, government, welfare, politicians as to why they need so much money?
read the article first:
"The survey encompassed origination fees charged by the lender, as well as fees charged by third parties. It did not include property taxes, recording fees, homeowners' insurance or discount points."
In other words - the higher costs are attributable to privately owned businesses charging more rather than government fees.
I wonder if the states with the lowest bank fees for closing mortgages have state laws limiting the amount banks can charge customers?
BTW - banks don't lend money for mortgages any longer - they merely process paperwork - investors purchasing mortgage based products from wall street are the real lenders.
In 1975 if you walked into Buffalo Savings Bank to browwer money for a home purchase here is what would have happened:
1. You would file an application and the following week a loan committee would make a decision.
2. The bank would accept your attorney's opinion of title.
3. The bank would hold your note, the bank made money by lending out depositor's funds at rates higher than it was paying on those deposits.
Today, your application is processed by computer. If approved, the bank adds "fees" because it won't be making money on the loan itself - it is going to package and sell the loan. Thus, it has to make money upfront on the processing of the loan. And because investors in California don't give a damn about our exceptional land records, title insurance will be required. Your attorney's opinion of title is worthless.
lots of reasons .. you have to pay your property taxes up front most of the time .. yes attorneys are involved ... but really how much are you paying an attorney?? if you are getting ripped off you have no one to blame but yourself .... our taxes are much higher than anywhere else .. that is huge .....
"I know you guys enjoy reading my stuff because it all makes sense. "
Dumbest post ever! Thanks for the laugh PO!
In other words - you were embarrassed by the revelation that the closing costs being referenced in the article were not about government imposed fees, but instead were imposed by privately owned companies - and the best you could do is respond with some gibberish.
Your post shows how little you understand economics. If "the extra $6,000,000,000 a year in state taxes" you claim could be passed on to consumers, then business would never consider taxes as a detriment - they would just pass it on to consumers. A good indication you have never owned a business. Nothing wrong with being a life-long w-2 - just don't try to pontificate on matters for which you have no qualification.
Again, you show you have NO idea how the real world works! Name one NYS health insurance company that faces ANY outside competition??
When EVERY company in NYS is forced to pay the same tax, they can charge more in premiums to pay for that tax. The same thing happens in bank, with rental property, with every other non competitive business in the state and US. It's the same reason why gas in more in NYS than in PA, NJ, and all the other states that boarder NYS.
I work with 100's of small business owners in 25 states ever day... I know how they work.
"I know you guys enjoy reading my stuff because it all makes sense. "
Dumbest post ever! Thanks for the laugh PO!
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