Report: Closing costs rising, state ranks 46th lowest

by Wally Northway

Published: August 18,2010

NEW YORK — A new study released by Bankrate Inc. reveals that the costs associated with buying a home are on the rise.

Bankrate’s 2010 Closing Costs Survey shows that the average origination and title fees on a $200,000 mortgage this year totaled $3,741, up from $2,732 in 2009. The full results of the study can be seen at www.bankrate.com/finance/mortgages/2010-closing-costs/.

Bankrate ranked Mississippi 46^th with an average closing price of $3,335, which includes origination and title and closing fees. In 2009, Mississippi ranked 25^th in closing costs.

In the study’s geographical breakdown, New York leads the nation at an average fee of $5,623, with Texas, Utah, San Francisco and Los Angeles rounding out the top five. Arkansas is the least expensive area with an average fee of $3,007, replacing Nevada, now number 34, at the bottom of the list.

Bankrate said one of the reasons for such a dramatic rise in the average estimated closing costs across the nation has to do with new regulations implemented in January. When providing a potential borrower a good faith estimate (GFE) of costs, regulations now require lenders to provide a title and closing fee estimate within 10 percent of what the final cost will be; in previous years, estimates could fall lower on the spectrum without penalty for the lender.