Mortgage closing costs are on the rise. The average closing cost for a mortgage was $4,143 in 2011—12.4 percent higher than in 2010. This is a significant contrast in actual mortgage rates, which are at record lows

One of the main reasons for these large increases in mortgage closings are from origination fees; the costs rose 12 percent in 2011 to $1,045. Additional settlement costs and attorney fees average about $544, which is a 9.6 percent increase from the previous year. Appraisal fees have also risen 7.8 percent from last year, and are not around $406

It’s important to note that closing costs can vary significantly among lenders. Those who are in the market to buy a home should shop around the find the absolute best price before settling on a home. Origination fees can range anywhere from between $123 to over $2,000, so looking at several properties can help potential home buyers should explore their options thoroughly before signing a mortgage

Financial analysts assert that part of the reason that there have been such large increases in home buying fees is because lenders need additional funds to process loans and paperwork these days. Recently, the Consumer Financial Protection Bureau proposed new regulations that limit certain fees required by lenders charged to buyers at closing. One of the fees that the agency hopes to ban is the “origination points” charge that some home buyers have to pay when they close on a home

The Bureau reveals that today’s mortgages can often come with several types of points and fees, and it can be difficult for home buyers to accurately compare mortgage offers. The organization is looking to make mortgages easier for consumers to understand, so that individuals can clearly weigh their options to choose the mortgage that is best for them