Buying a home is much cheaper these days than it has been in the past few years, but the cost of closing on a mortgage has increased in many states.
Nationwide, the average origination and title fees on a $200,000 purchase mortgage totaled $4,070, according to Bankrate. That’s an 8.8 percent jump from 2010, when the average closing costs totaled $3,741.
For the second year in a row, the states with the highest closing costs are New York, where costs average $6,183; Texas, at $4,944; and Utah, with $4,906. Next was California, where average closing costs in San Francisco totaled $4,832. New York and Texas have dominated the top spots for five years.
Most of the jump in closing costs is tied to fees charged by lenders. On average, lenders charged about $1,614 in origination fees this year, up 10.3 percent from a year ago. Origination fees include lender charges for services such as underwriting and processing.
Fees imposed by third parties, including title, appraisal, postage/courier and survey charges, averaged $2,456, up 7.9 percent from 2010.