As if buying a new house weren’t painful enough, most people have to shell out another couple thousand dollars on top of the house price to finalize their mortgage.
The national average for mortgage closing costs was $2,128 on a $200,000 home loan, according to a survey from Bankrate.com. That includes an average of $1,058 in fees from the mortgage lender and an additional $1,070 in fees from third parties such as appraisers and inspectors.
The average total cost is up more than 15 percent compared to last year, largely because of huge increase in third-party fees. But much of the increase is due to how lenders report third-party fees rather than a true rise in those costs, says Holden Lewis, Bankrate.com’s senior mortgage analyst.
Related: 39 US Cities With Record High Home Prices
New federal disclosure rules enacted in October require mortgage lenders to include attorney, closing and settlement costs into their estimates. “In previous years, almost half of the lenders did not include that category in their good faith estimates,” he says. As for lender fees, they inched up 1.6 percent from last year, about in line with inflation, says Lewis.
Overall, costs charged by the lender don’t vary that much across states, but do differ depending on the lender within a state, underscoring the importance for consumers to shop around and compare offers, says Lewis.
The biggest differentiator between states with the lowest costs and those with the highest costs was third-party fees rather than fees charged by the lender. States that require attorneys at closing to represent the buyer, seller and lender generally have more expensive third-party costs, says Lewis.
Bankrate.com surveyed up to 10 mortgage lenders in all states and Washington, D.C., in June. The loan estimates were for a $200,000 mortgage with a 20-percent down payment. Closing costs include fees charged by lenders and third-party fees, but excludes discount points, taxes, title fees, property insurance, association fees, interest and other prepaid items.
Here are the average closing costs for all 50 states, ranked from most expensive to least expensive:
Hawaii
Total Closing Costs: $2,655
Origination fees: $1,207
Third-party fees: $1,448
New York
Total Closing Costs: $2,560
Origination fees: $1,103
Third-party fees: $1,458
North Carolina
Total Closing Costs: $2,409
Origination fees: $1,142
Third-party fees: $1,267
Delaware
Total Closing Costs: $2,358
Origination fees: $1,047
Third-party fees: $1,311
South Carolina
Total Closing Costs: $2,322
Origination fees: $1,134
Third-party fees: $1,187
Connecticut
Total Closing Costs: $2,313
Origination fees: $1,066
Third-party fees: $1,248
Georgia
Total Closing Costs: $2,303
Origination fees: $1,155
Third-party fees: $1,148
Massachusetts
Total Closing Costs: $2,273
Origination fees: $1,056
Third-party fees: $1,216
Alaska
Total Closing Costs: $2,257
Origination fees: $1,048
Third-party fees: $1,209
California
Total Closing Costs: $2,257
Origination fees: $1,144
Third-party fees: $1,113
Washington
Total Closing Costs: $2,234
Origination fees: $1,059
Third-party fees: $1,175
New Mexico
Total Closing Costs: $2,231
Origination fees: $1,078
Third-party fees: $1,153
Maryland
Total Closing Costs: $2,229
Origination fees: $1,180
Third-party fees: $1,049
District of Columbia
Total Closing Costs: $2,213
Origination fees: $1,183
Third-party fees: $1,030
Alabama
Total Closing Costs: $2,189
Origination fees: $1,062
Third-party fees: $1,127
Maine
Total Closing Costs: $2,185
Origination fees: $1,064
Third-party fees: $1,121
Florida
Total Closing Costs: $2,180
Origination fees: $1,123
Third-party fees: $1,057
Vermont
Total Closing Costs: $2,178
Origination fees: $1,075
Third-party fees: $1,103
Mississippi
Total Closing Costs: $2,175
Origination fees: $1,132
Third-party fees: $1,043
Texas
Total Closing Costs: $2,175
Origination fees: $1,032
Third-party fees: $1,143
West Virginia
Total Closing Costs: $2,171
Origination fees: $1,017
Third-party fees: $1,153
New Jersey
Total Closing Costs: $2,168
Origination fees: $937
Third-party fees: $1,231
Oregon
Total Closing Costs: $2,156
Origination fees: $1,091
Third-party fees: $1,065
Virginia
Total Closing Costs: $2,136
Origination fees: $1,069
Third-party fees: $1,067
Idaho
Total Closing Costs: $2,108
Origination fees: $1,053
Third-party fees: $1,055
North Dakota
Total Closing Costs: $2,108
Origination fees: $994
Third-party fees: $1,114
Iowa
Total Closing Costs: $2,107
Origination fees: $1,013
Third-party fees: $1,094
Illinois
Total Closing Costs: $2,079
Origination fees: $1,080
Third-party fees: $1,000
Rhode Island
Total Closing Costs: $2,076
Origination fees: $1,069
Third-party fees: $1,007
Arizona
Total Closing Costs: $2,071
Origination fees: $1,063
Third-party fees: $1,009
Tennessee
Total Closing Costs: $2,068
Origination fees: $1,108
Third-party fees: $959
New Hampshire
Total Closing Costs: $2,059
Origination fees: $1,046
Third-party fees: $1,013
Indiana
Total Closing Costs: $2,057
Origination fees: $1,065
Third-party fees: $992
Montana
Total Closing Costs: $2,042
Origination fees: $1,016
Third-party fees: $1,026
Ohio
Total Closing Costs: $2,039
Origination fees: $1,045
Third-party fees: $994
Michigan
Total Closing Costs: $2,038
Origination fees: $1,049
Third-party fees: $989
Minnesota
Total Closing Costs: $2,030
Origination fees: $1,033
Third-party fees: $997
Nevada
Total Closing Costs: $1,994
Origination fees: $943
Third-party fees: $1,051
Colorado
Total Closing Costs: $1,990
Origination fees: $1,057
Third-party fees: $933
Wyoming
Total Closing Costs: $1,989
Origination fees: $982
Third-party fees: $1,007
Kansas
Total Closing Costs: $1,972
Origination fees: $1,002
Third-party fees: $970
Nebraska
Total Closing Costs: $1,969
Origination fees: $1,009
Third-party fees: $960
Utah
Total Closing Costs: $1,967
Origination fees: $1,082
Third-party fees: $885
Arkansas
Total Closing Costs: $1,963
Origination fees: $1,005
Third-party fees: $958
Missouri
Total Closing Costs: $1,926
Origination fees: $1,000
Third-party fees: $926
Oklahoma
Total Closing Costs: $1,911
Origination fees: $985
Third-party fees: $926
South Dakota
Total Closing Costs: $1,904
Origination fees: $1,019
Third-party fees: $886
Kentucky
Total Closing Costs: $1,874
Origination fees: $1,034
Third-party fees: $1,130
Louisiana
Total Closing Costs: $1,863
Origination fees: $1,010
Third-party fees: $853
Wisconsin
Total Closing Costs: $2,128
Origination fees: $1,058
Third-party fees: $1,070
Pennsylvania
Total Closing Costs: $1,837
Origination fees: $1,057
Third-party fees: $780
