By Jim Donovan: Are you in the market for a new home? Or maybe you’re thinking of refinancing the home loan you already have? If so, mortgage closing costs are on the rise.
According to Bankrate.com closing costs rose six percent over the past year and now average $2,539 on a $200,000 loan. Origination fees increased nine percent to $1,877 and third-party fees rose one percent to $662.
Texas’ average closing costs of $3,046 are the highest in the nation. In our region New Jersey rounded out the top 10 most expensive states at $2625. Delaware at $2516 took the 25th spot tied with West Virginia and New Mexico. While Pennsylvania trailed slightly at #28 with closing costs on a $200k loan averaging $2511.
“New mortgage regulations are the biggest reasons why closing costs went up over the past year,” said Holden Lewis, senior mortgage analyst, Bankrate.com. “The good news is that some lenders have not increased fees. To get the best deal, consumers should compare good faith estimates from at least three different lenders.”
Click here to view the average closing costs in all 50 states and Washington, D.C.: