Closing Costs Are a Mystery to Millennials

Closing costs add significantly to the bottom line on a home purchase, yet new research finds that about two-thirds of prospective buyers aged 18 to 34 are unaware of this extra expense. Millennials “probably understand there’s a down payment and interest rate, but outside of that, they’re not really educated on the other fees they’ll have to pay,” according to Brad Chmura of ClosingCorp, which sponsored the survey of 1,000 people. He notes that young adults typically are clued in to closing costs by a real estate professional, or they stumble upon this home-buying reality when conducting their own research. Millennials are not the only ones uninformed, however, as 34 percent of poll participants across all age groups admitted to being “not very” or “not at all” aware of closing costs — which include everything from title and escrow to the price of an appraisal to lender fees. | Read More