Mortgage Fees
Department of Housing and Urban Development 270- page report
The study of 7,560 mortgages that were guaranteed by the Federal Housing Administration found that black borrowers on average paid $415 more in closing costs than their white counter parts after accounting for differences between the borrowers.
Hispanic borrowers paid $365 more. Also, those living in neighborhoods where all adults have a college education typically paid $1,100 less in fees than those where no residents had a college education.
Loans made by mortgage brokers were typically $300 to $425 more expensive than those made directly by deposit-taking banks, thrifts or credit unions, after holding other factors constant, the study determined. Loans made directly by big mortgage companies feel in between.
My Opinion:
Lenders and brokers quoted lower fees to more educated borrowers, believing that those would-be customers had shopped around or were aware of the prevailing closing costs and that those with less education had not. Minority borrowers and those with less education might be confused by the complexity of mortgages that come with closing costs.
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