Buyers Beware: 10 States With the Most Expensive Mortgage Costs
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.
10. New Jersey
Average closing costs: $2,625
9. New Hampshire
Average closing costs: $2,641
Average closing costs: $2,648
Average closing costs: $2,649
Average closing costs: $2,654
Average closing costs: $2,706
Average closing costs: $2,808
3. New York
Average closing costs: $2,892
Average closing costs: $2,897
Average closing costs: $3,046
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