Cash-strapped home buyers struggling with soaring home prices have an unpleasant surprise awaiting them at the closing table. Closing costs are rising nearly as quickly as home prices.
On average, mortgage closing costs rose 6 percent over 2012 to $2,402, according to Bankrate.com. Origination fees accounted for the bulk of the increase, rising 8 percent, while third-party fees for services like title and appraisals edged up 1 percent to $672.
Hawaii’s average closing costs of $2,919 are the highest in the nation. Alaska ($2,675), South Carolina ($2,658), California ($2,639) and New Mexico ($2,566) join the Aloha State in the top five.
Wisconsin ($2,119), Missouri ($2,188), Kansas ($2,193), Michigan ($2,203) and Washington State ($2,208) comprise the bottom five.
“It’s unlikely that you will move to Wisconsin solely to pay lower closing costs, but you should shop around and compare fees from different loan originators to make sure you get the best deal in your area,” said Polyana da Costa, senior mortgage analyst, Bankrate.com.
| Closing costs | |||||
| 2013 rank | 2012 rank† | State | Lender’s | Third-party | Origination plus |
| 1 | 2 | Hawaii | $1,970 | $949 | $2,919 |
| 2 | 4 | Alaska | $1,925 | $750 | $2,675 |
| 3 | 6 | South Carolina | $1,935 | $723 | $2,658 |
| 4 | 35 | California | $1,977 | $662 | $2,639 |
| 5 | 43 | New Mexico | $1,807 | $760 | $2,566 |
| 6 | 8 | North Carolina | $1,840 | $718 | $2,558 |
| 7 | 18 | New Jersey | $1,804 | $741 | $2,545 |
| 8 | 34 | Oklahoma | $1,919 | $600 | $2,519 |
| 9 | 20 | Florida | $1,798 | $719 | $2,517 |
| 10 | 7 | Delaware | $1,742 | $760 | $2,502 |
| 11 | 27 | Ohio | $1,803 | $693 | $2,496 |
| 12 | 11 | Georgia | $1,816 | $674 | $2,490 |
| 13 | 3 | Texas | $1,690 | $778 | $2,468 |
| 14* | 26 | Pennsylvania | $1,920 | $540 | $2,460 |
| 14* | 13 | North Dakota | $1,797 | $663 | $2,460 |
| 16 | 24 | District of Columbia | $1,826 | $623 | $2,449 |
| 17 | 22 | Montana | $1,767 | $680 | $2,446 |
| 18 | 19 | Louisiana | $1,782 | $662 | $2,443 |
| 19 | 33 | Maryland | $1,816 | $624 | $2,441 |
| 20 | 31 | Tennessee | $1,806 | $631 | $2,437 |
| 21 | 21 | Connecticut | $1,757 | $680 | $2,436 |
| 22 | 36 | Maine | $1,761 | $647 | $2,408 |
| 23 | 49 | Idaho | $1,767 | $641 | $2,407 |
| 24 | 38 | Iowa | $1,757 | $647 | $2,403 |
| 25 | 41 | Arkansas | $1,782 | $614 | $2,396 |
| 26 | 28 | Indiana | $1,732 | $656 | $2,387 |
| 27 | 48 | Colorado | $1,758 | $625 | $2,383 |
| 28 | 17 | Kentucky | $1,732 | $649 | $2,381 |
| 29 | 37 | Arizona | $1,752 | $621 | $2,372 |
| 30 | 46 | Oregon | $1,707 | $663 | $2,370 |
| 31 | 23 | Virginia | $1,718 | $650 | $2,369 |
| 32 | 44 | South Dakota | $1,732 | $617 | $2,349 |
| 33 | 39 | Alabama | $1,721 | $627 | $2,348 |
| 34 | 15 | Rhode Island | $1,686 | $660 | $2,347 |
| 35 | 51 | Nevada | $1,642 | $704 | $2,346 |
| 36 | 10 | Nebraska | $1,656 | $689 | $2,345 |
| 37 | 1 | New York | $1,504 | $827 | $2,331 |
| 38 | 40 | Mississippi | $1,682 | $639 | $2,320 |
| 39 | 45 | Utah | $1,663 | $653 | $2,316 |
| 40 | 50 | Wyoming | $1,678 | $623 | $2,301 |
| 41 | 14 | Massachusetts | $1,601 | $699 | $2,300 |
| 42 | 16 | West Virginia | $1,578 | $705 | $2,283 |
| 43 | 29 | Minnesota | $1,641 | $612 | $2,253 |
| 44 | 12 | New Hampshire | $1,576 | $676 | $2,252 |
| 45 | 42 | Vermont | $1,578 | $667 | $2,245 |
| 46 | 9 | Illinois | $1,591 | $647 | $2,238 |
| 47 | 47 | Washington | $1,603 | $605 | $2,208 |
| 48 | 32 | Michigan | $1,591 | $611 | $2,203 |
| 49 | 30 | Kansas | $1,558 | $635 | $2,193 |
| 50 | 25 | Missouri | $1,542 | $646 | $2,188 |
| 51 | 5 | Wisconsin | $1,438 | $682 | $2,119 |
| Average | $1,730 | $672 | $2,402 | ||
*Denotes a tie
Closing Costs Keep Pace with Prices | RealEstateEconomyWatch.com.