Closing Costs Keep Pace with Prices | North Salem Real Estate

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 origination fees	Third-party fees	Origination plus third-party fees
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.