Buyers Beware: 10 States With the Most Expensive Mortgage Costs

Source: Thinkstock

Source: Thinkstock

The initial price tag is only the beginning for homebuyers. Other costs associated with the American Dream include property taxes, insurance, moving costs, larger utility bills, and never-ending maintenance. However, before the ink is even dry on the pile of mortgage papers, homebuyers are faced with rising closing costs.

Obtaining a home loan across the nation is more expensive this year. Mortgage closing costs increased 6 percent over the past year and now average $2,539 on a $200,000 loan, according to a new analysis by Bankrate.com (NYSE:RATE). The organization surveyed up to ten lenders in each state by receiving good faith estimates. Costs include fees charged by lenders, as well as third-party fees for services such as appraisals and credit reports. Origination fees increased nine percent to $1,877 while third-party fees rose one percent to $662.

“New mortgage regulations are the biggest reasons why closing costs went up over the past year,” explains Holden Lewis, senior mortgage analyst, of Bankrate.com. “The good news is that some lenders have not increased fees. To get the best deal, consumers should compare good faith estimates from at least three different lenders.”

The range of closing costs averaged from $2,265 to as much as $3,046. Let’s take a look at the ten most expensive states in the country to obtain a home loan.

Source: Tomwsulcer / Wikimedia Commons

Source: Tomwsulcer / Wikimedia Commons

10. New Jersey

Average closing costs: $2,625

Source: iStock

Source: iStock

9. New Hampshire

Average closing costs: $2,641

Source: https://www.facebook.com/GasparillaInn/

Source: https://www.facebook.com/GasparillaInn/

8. Florida

Average closing costs: $2,648

Source: http://www.twinfarms.com/

Source: http://www.twinfarms.com/

7. Vermont

Average closing costs: $2,649

Source: iStock

Source: iStock

6. Nebraska

Average closing costs: $2,654

Source: Thinkstock

Source: Thinkstock

5. Wisconsin

Average closing costs: $2,706

Source: Thinkstock

Source: Thinkstock

4. Hawaii

Average closing costs: $2,808

Source: Thinkstock

Source: Thinkstock

3. New York

Average closing costs: $2,892

Source: Thinkstock

Source: Thinkstock

2. Alaska

Average closing costs: $2,897

Source: Thinkstock

Source: Thinkstock

1. Texas

Average closing costs: $3,046

Follow Eric on Twitter @Mr_Eric_WSCS

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