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Where Do Homebuyers Pay the Most for Closing Costs?

mouse-and-moneyOne study earlier this month indicated that homeowners in Hawaii had to work more hours per month on average than in any other state to afford their monthly mortgage payment.

Hawaii homeowners are paying more on their homes right from the get-go, however. A new analysis from Bankrate.com found that average closing costs for homebuyers in Hawaii are more than in any other state.

Estimated amounts paid by homebuyers for closing costs, which include fees charged by lenders as well as third-party fees for services such as appraisals, are more accurate than ever because of the CFPB’s TRID rule enacted last October, according to Bankrate.com.

The average closing costs for Bankrate.com's study were based on online loan estimates for a $200,000 mortgage to buy a single-family home with a 20 percent downpayment.

The study found the average closing costs on a mortgage loan in Hawaii to be $2,655 ($1,207 in origination fees and $1,448 in third-party fees). New York a close second with an average closing cost of $2,560. Other states high on the list were North Carolina ($2,409), Delaware ($2,358), South Carolina ($2,322), and Connecticut ($2,313), according to Bankrate.com.

The state with the lowest average closing cost on a loan was Pennsylvania at $1,837; other states that came in with average closing costs of less than $2,000 were Wisconsin ($1,863), Kentucky ($1,874), South Dakota ($1,904), Oklahoma ($1,911), and Missouri ($1,926).

The average cost to close a mortgage loan nationwide was $2,128 ($1,058 in origination fees and $1,070 in third-party fees).

“Thanks to the new and improved mortgage disclosures that the CFPB introduced last October, closing cost estimates have become more accurate because they mandate that lenders include all costs ahead of time,” said Holden Lewis, Bankrate.com’s senior mortgage analyst. “This is great for consumers who can now comparison shop with more confidence.”

Click here to view the complete list of states ranked according to closing costs.

About Author: Brian Honea

Brian Honea's writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master's degree from Amberton University in Garland.
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