Total costs rose despite a sharp decline in title insurance and other third-party fees, which fell 12 percent from 2011, while origination fees edged down 1 percent, Bankrate reported.
“This is the second year in which lenders are required to estimate third-party fees within 10 percent of the final cost. It seems like they’re getting more accurate, which helps explain the sharp decrease in these fees over the past year,” Greg McBride, CFA, Bankrate.com’s senior financial analyst, said in a news released. “The main lesson of this survey for consumers is to shop around for at least three different estimates. While no one is going to move to a new state just because closing costs are lower, it’s important for people to realize that there is variation even within their neighborhood, and that they can save by being an educated consumer.”
New York State had the nation’s most expensive closing costs for the third straight year at an average of $5,435.
The least expensive state is Missouri at $3,006 on average.
To view the entire survey with results from all 50 states and the District of Columbia, click here:
http://www.bankrate.com/finance/mortgages/2012-closing-costs/closing-costs-by-state.aspx