Good-faith estimates get real

Good-faith estimates on mortgage closing costs are more accurate, but at a higher cost. Mortgage lenders must now pay the difference if a loan's closing costs come in higher than they estimated, which means no more lowballing to lure customers.

Lenders face new penalties if they lowball estimates of upfront mortgage costs, which has resulted in lenders and brokers coming clean about how much borrowers will pay.

As a result, the so-called good-faith estimates that mortgage providers must give to prospective customers show closing costs soaring 36% this year.

The main reason for the increase: Lenders are giving more accurate estimates because they now must pay to cover the difference if they underestimate the costs.