A new report from Bankrate.com shows significant declines in mortgage closing costs, pointing to a victory for the industry.
According to the website's recent study, the average cost to close on a mortgage loan in the U.S. dropped by seven percent during the past year.
Polling lenders in all 50 states and the District of Columbia, Bankrate.com found that the nation's average tally for closing costs came to just $3,754. Additionally, the company's eighth
annual closing costs survey revealed that title insurance and other third-party fees decreased by 12 percent from 2011, as origination fees fell by one percent.
""This is the second year in which lenders are required to estimate third-party fees within 10 percent of the final cost. It seems like they're getting more accurate, which helps explain the sharp decrease in these fees over the past year,"" stated Greg McBride, CFA, Bankrate.com's senior financial analyst.
""The main lesson of this survey for consumers is to shop around for at least three different estimates. While no one is going to move to a new state just because closing costs are lower, it's important for people to realize that there is variation even within their neighborhood, and that they can save by being an educated consumer,"" added McBride.
New York boasted the country's most expensive closing costs for the third consecutive year, ringing in at an average of $5,435. Texas, Pennsylvania, Florida and Oklahoma rounded out Bankrate.com's list of areas with the highest closing costs.
Meanwhile, Missouri took the title as the least expensive state for closing costs, which came to $3,006 on average; Kansas, Colorado, Iowa and Arkansas were also among the five cheapest states.