Mortgage closing costs up 6% to $2,539 nationwide
NEW YORK – Aug. 5, 2014 – Mortgage closing costs rose six percent over the past year and now average $2,539 on a $200,000 loan, according to Bankrate.com. Origination fees increased nine percent to $1,877 and third-party fees rose one percent to $662.
Texas' average closing costs of $3,046 are the highest in the nation. Alaska ($2,897), New York ($2,892), Hawaii ($2,808) and Wisconsin ($2,706) round out the top five. Cheapest closing costs are in Nevada (an average of $2,265), Tennessee ($2,366), Missouri ($2,387), Ohio ($2,392) and Washington, D.C. ($2,402).
Florida ranks eighth nationally, according to Bankrate. On a $200,000 loan, the average origination fees charged by lenders is $1,982, and third-party fees and $666 for total closing costs of $2,648.
Bankrate.com offers a list of average fees for a Florida closing, though with a notation that they don't add up to the overall average because "each lender charges some of the fees listed below, but not all of them."
Origination fees charged by lenders in Florida
Origination points (not discount points): $732
Document preparation: $73
Broker, originator or lender: $1,275
Tax service: $74
Wire transfer: $25
Third-party fees in Florida
Attorney, closing or settlement: $400
Credit report: $17
Flood certification: $9
Employment verification: $15
"New mortgage regulations are the biggest reasons why closing costs went up over the past year," says Holden Lewis, senior mortgage analyst at Bankrate.com. "The good news is that some lenders have not increased fees. To get the best deal, consumers should compare good faith estimates from at least three different lenders."
Bankrate surveyed up to 10 lenders in all 50 states and Washington, D.C. in June 2014. Researchers obtained online good faith estimates for a $200,000 mortgage to buy a single-family home with a 20 percent downpayment. Costs include fees charged by lenders, as well as third-party fees for services such as appraisals. The survey excludes taxes, title fees, property insurance, association fees, interest and other prepaid items.
For a breakdown of closing costs by state, visit Bankrate.com's website.
© 2014 Florida Realtors®