Blog: Mortgage Closing Costs Rise 6%
By Jim Donovan: Looking to buy a new house? Don’t forget to factor in the closing costs! Mortgage closing costs rose six percent over the past year to $2,402, according to Bankrate.com. Origination fees accounted for the bulk of the increase. They jumped eight percent to $1,730, while third-party fees edged up one percent to $672.
Hawaii’s average closing costs of $2,919 are the highest in the nation. Alaska ($2,675), South Carolina ($2,658), California ($2,639) and New Mexico ($2,566) join the Aloha State in the top five.
In our area New Jersey ranked #7 ($2,545) Delaware was #10 ($2,502) and Pennsylvania is tied for the 14th-highest mortgage closing costs in the nation ($2,460)
Wisconsin ($2,119), Missouri ($2,188), Kansas ($2,193), Michigan ($2,203) and Washington State ($2,208) comprise the bottom five.
“It’s unlikely that you will move to Wisconsin solely to pay lower closing costs, but you should shop around and compare fees from different loan originators to make sure you get the best deal in your area,” said Polyana da Costa, senior mortgage analyst, Bankrate.com.
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Bankrate surveyed up to 10 lenders in all 50 states plus the District of Columbia in June 2013. Researchers obtained online good faith estimates for a $200,000 mortgage to buy a single-family home with a 20 percent down payment. Costs include fees charged by lenders, as well as third-party fees for services such as appraisals. The survey excludes taxes, title fees, property insurance, association fees, interest and other prepaid items.