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Which States Have the Highest Closing Fees?
Thursday, August 10, 2006
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NEW YORK, NY -Bankrate, Inc. announced that it has released its 2006 National Closing Cost Survey. The survey provides a comparison of lender, title and settlement fees in 51 geographic locations, which includes cities in all 50 states and the District of Columbia. Each state listing includes their current ranking, compared to their 2005 position, a detailed breakdown of average closing fees for that state, and a printable worksheet for consumers to compare average costs to their lender's fees.
In conjunction with the Closing Cost Survey, Bankrate commissioned a national poll conducted by Roper asking 1,005 consumers about their closing cost fees. Of the homeowners surveyed, 13 percent said that they paid more on their closing costs than what they were told by their lender. Those who found their lender's estimates to come in lower than expected totaled 8%. However, the majority of homeowners (60%) found that their closing costs were about the same as the estimate they received from their lender.
"No matter where you live, it pays to shop around," said Daniel P. Ray, editor in chief of Bankrate.com. "Our closing cost estimates, teamed with our mortgage rate table data, provide consumers the knowledge and confidence needed during the home purchasing process," Mr. Ray added.
Bankrate's Closing Cost Survey was conducted by obtaining eight to 10 good faith estimates in each state 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 there. 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.
Average Closing Fees by State:
1. New York $3,887
2. Texas $3,578
3. Hawaii $3,407
4. Ohio $3,354
5. Florida $3,349
6. Connecticut $3,284
7. Alaska $3,265
8. New Mexico $3,239
9. Kentucky $3,206
10. Alabama $3,189
11. Oklahoma $3,181
12. Pennsylvania $3,175
13. New Jersey $3,158
14. Massachusetts $3,143
15. Oregon $3,137
16. Mississippi $3,102
17. California $3,097
18. Louisiana $3,056
19. Idaho $3,049
20. Georgia $3,046
21. Tennessee $3,016
22. Nevada $2,993
23. Colorado $2,988
23. South Carolina $2,988
25. Delaware $2,984
26. Wisconsin $2,972
27. Maine $2,961
27. Rhode Island $2,961
29. Vermont $2,950
30. Minnesota $2,919
31. Illinois $2,918
32. Utah $2,913
32. Virginia $2,913
34. North Carolina $2,905
35. Arkansas $2,904
36. North Dakota $2,895
37. Washington $2,887
38. Maryland $2,876
39. Nebraska $2,874
40. Iowa $2,841
41. West Virginia $2,823
42. South Dakota $2,817
43. Indiana $2,793
44. Kansas $2,787
45. Arizona $2,784
46. Washington, D.C. $2,772
46. Wyoming $2,772
48. Montana $2,737
49. New Hampshire $2,734
40. Michigan $2,714
51. Missouri $2,713
The study does not include taxes, other governmental fees and escrow fees.
The Closing Cost Poll was conducted July 21-23 by Roper Public Affaires and Media, a part of GfK NOP. A total of 1,005 adults aged 18+ were interviewed across the United States. The margin of error for results based on the total sample is plus or minus 3 percentage points. The margin of error for subgroups may be higher.
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