Closing Costs Highest in New York, Survey Says

A new nationwide survey released by Bankrate, Inc. showed that
New York State is the most expensive location in the country to close a mortgage transaction. The average closing cost in New York is $3,830, compared to Indiana (least expensive state) at $2,339. The survey compared the costs of lender fees, title fees and settlement fees in 51 geographic locations. Included in the study is a detailed listing of average closing fees by state, and a printable worksheet for consumers to compare average costs to their lenders' fees.

"Consumers armed with information can make better deals," said Holden Lewis, senior reporter at Bankrate.com. "Many fees are fixed costs, but others are negotiable. Doing homework can save consumers money in the end," Mr. Lewis added. The Bankrate survey includes tips and advice on saving money on
closing costs.

Bankrate's Closing Cost Survey was conducted in June of 2007 by obtaining four to nine good faith estimates from the Web sites of online lenders. Researchers picked a ZIP code in some of the largest cities in each state and requested information on the closing costs for at $200,000 loan. They requested fees on a 30- year, fixed-rate mortgage for a borrower with a 20 percent down payment and good credit to buy a single-family house. Bankrate's survey includes lenders' origination fees and title and settlement fees, and not taxes or prepaid items.

2007 Closing 2007 Rank 2006 Rank State Costs 1 1 New York $3,830 2 2 Texas $3,413 3 5 Florida $3,175 4 12 Pennsylvania $3,169 5 4 Ohio $3,047 6 3 Hawaii $3,008 7 13 New Jersey $2,996 8 11 Oklahoma $2,978 9 8 New Mexico $2,922 10 25 Delaware $2,904 11 6 Connecticut $2,858 12 14 Massachusetts $2,849 13 18 Louisiana $2,844 14 16 Mississippi $2,836 15 21 Tennessee $2,832 16 7 Alaska $2,811 17 17 Calif. - LA $2,779 18 27* Rhode Island $2,768 19 38 Maryland $2,755 20 32* Virginia $2,727 21 49 New Hampshire $2,724 22 46* District of Columbia $2,722 23 36 North Dakota $2,719 24 23* Colorado $2,705 25 50 Michigan $2,694 26 30 Minnesota $2,692 27 41 West Virginia $2,692 28 35 Arkansas $2,687 29 27* Maine $2,671 30 29 Vermont $2,666 31 20 Georgia $2,655 32 32* Utah $2,646 33 19 Idaho $2,627 34 48 Montana $2,619 35 9 Kentucky $2,602 36 40 Iowa $2,583 37 23* South Carolina $2,558 38 37 Washington $2,555 39 10 Alabama $2,552 40 42 South Dakota $2,532 41 15 Oregon $2,532 42 44 Kansas $2,521 43 39 Nebraska $2,515 44 26 Wisconsin $2,508 45 51 Missouri $2,496 46 45 Arizona $2,489 47 34 North Carolina $2,487 48 22 Nevada $2,467 49 31 Illinois $2,401 50 46* Wyoming $2,390 51 43 Indiana $2,339