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How Do Closing Costs Differ Across the Country?

ClosingCorp, a provider in residential real estate closing cost data and technology for mortgage and real estate service industries released its newest closing data Tuesday. National average closing costs totaled at $4,876 and the top five states with the highest closing costs were District of Columbia at $12,573, New York at $9,341, Delaware at $8,663, Maryland at $7,211, and Vermont at $6,839.

By using 20,000 real estate service providers in ClosingCorp’s Network, the data can be compiled using real rates and fees  throughout the country. “Closing costs can vary significantly, depending on the state or county a homebuyer lives in. For example, five counties in New York—Kings, Queens, Bronx, Richmond and Suffolk—had the highest closing costs, going well above the national and state average, due to having some of the highest transfer taxes in the country,” said Bob Jennings, chief executive officer of ClosingCorp.

The data represents the average closing costs at the national level, which includes the lender’s title, owner’s title, settlement appraisal, transfer taxes, and recording fees. It also includes costs outside of closing, including services that inspect the home, roof and property for pests and land surveys.

Of course, many homebuyers are still surprised closing costs are even required—making it vital for our company to keep educating borrowers and helping lenders improve the accuracy of their loan estimates in order to eliminate any surprises” Jennings said.

The CBSA with the highest average closing costs was New York-Newark-Jersey City, NY-NJ-PA at $9,046 while the CBSA with the lowest average closing cost was Muncie, Indiana at $2,785.

Methodology

The median fees from ClosingCorp are derived by running preconfigured loan scenarios against the verified rates and fees data it maintains for service providers and tax authorities with coverage in every county nationwide.These scenarios are based on different loan types, purposes, and amounts in $25,000 increments up to $100,000, then $100,000 up to $20,000,000.

About Author: Dean Terrell

After earning his B.A. in Writing Arts at Rowan University located in South Jersey, Terrell moved to Texas to pursue a career in publishing and editorials.
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