Closing Costs Are Falling
According to Bankrate’s annual survey of closing costs, the average cost to close on a $200,000 mortgage in the U.S. is $3,754 - down 7.4% or $300 from less than 12 months earlier. Included in closing costs are origination, processing, and third party fees. Fees can vary by lender, even when compared in the same city. This signifies the importance of getting at least three estimates, given the competitive market.
Nationally, Massachusetts has the 9th highest closing costs of any state, with origination fees at $1,607 and title and closing costs at $2,377, totaling $3,984. A year ago, Massachusetts ranked 15th nationally. However, despite being closer to the most expensive state for closing costs in 2012, the average cost to close on a $200,000 mortgage in the Bay State is down from $4,244 in 2011, a decline of 6 percent. To compare to neighboring states, Connecticut ranks 26th at $3,702, Rhode Island ranks 27th at $3,686, and New Hampshire ranks 33rd at $3,591. The most expensive state is New York, where closing costs averaged $5,400, and Missouri came in the cheapest at $3,006.
All lender closing fees should be noted in the Good Faith Estimate form required for lenders to provide borrowers within 72 hours after they apply the loan. This is the best comparison tool for consumers shopping for the best mortgage deal.