Mortgage Closing Costs on the Decline
Daily Real Estate News | Tuesday, August 07, 2012
Closing costs have dropped by 7 percent over the last year, according to an annual survey on closing costs conducted by Bankrate.com. Closing costs average $3,754 nationwide.
Title insurance and other third-party fees also saw a drop in the last year, falling 12 percent, and origination fees fell 1 percent, according to Bankrate.com’s survey.
“This is the second year in which lenders are required to estimate third-party fees within 10 percent of the final cost. It seems like they’re getting more accurate, which helps explain the sharp decrease in these fees over the past year,” Greg McBride, Bankrate.com’s senior financial analyst, said in a statement. “The main lesson of this survey for consumers is to shop around for at least three different estimates. While no one is going to move to a new state just because closing costs are lower, it’s important for people to realize that there is variation even within their neighborhood, and that they can save by being an educated consumer.”
5 States With Highest Average Closing Costs
- New York: $5,435
- Texas: $4,619
- Pennsylvania: $4,467
- Florida: $4,395
- Oklahoma: $4,352
5 States With the Lowest Average Closing Costs
- Missouri: $3,006
- Kansas: $3,193
- Colorado: $3,199
- Iowa: $3,257
- Arkansas: $3,325
View the survey, which contains all states’ average closing costs.