Mortgage closing costs up 6% over past year NEW YORK – Aug. 5, 2013 – Mortgage closing costs rose six percent nationwide over the past year to $2,402, according to a study released by Bankrate. Origination fees accounted for the bulk of that increase, jumping 8 percent to $1,730. Third-party fees, which made up the rest, edged up one percent to $672. While closing costs rose nationwide, Florida saw a bigger increase. The state was in the top 20 for closing costs last year, but barely with a rank of 20. This year, Florida moved up to No. 9. 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. All fees are based on a $200,000 home with 20 percent down. Wisconsin ($2,119), Missouri ($2,188), Kansas ($2,193), Michigan ($2,203) and Washington State ($2,208) comprise the bottom five out of all the states. In Florida, the average closing costs were $2,517 based on a $160,000 mortgage loan after making a $40,000 downpayment. Of that total, $1,798 came from loan origination fees, while $719 resulted from third-party fees. To calculate average closing costs, Bankrate surveyed up to 10 lenders in 50 states plus the District of Columbia in June 2013. Costs include fees charged by lenders, as well as third-party fees for services; but it excludes taxes, title fees, property insurance, association fees, interest and other prepaid items. Bankrate has posted a breakdown of average fees for closing cost items – applications, processing, appraisals, etc. – on its website. “It’s unlikely that you’ll move to Wisconsin solely to pay lower closing costs, but you should shop around and compare fees from different loan originators,” advises Polyana da Costa, senior mortgage analyst, Bankrate.
Posted on: Mon, 05 Aug 2013 20:14:56 +0000
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