Urban Institute Update
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Urban Institute Update
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What components make up closing costs?
Coming up with a down payment is a common obstacle to homeownership, one that’s exacerbated by closing costs—which often exceed $10,000.
Using Fannie Mae data, researchers examine what closing costs consist of, the size of each component, and how these costs differ by loan amount.
The sizes of the fees that make up closing costs vary significantly and lead to a regressive pattern of costs, which makes the homebuying process more burdensome for people with lower incomes and less wealth, who tend to buy less expensive homes.
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