Bankrate.com study: NY, TX and FL top the nation in closing costsMortgagePress.comBankrate.com, closing sosts, GFEs
A new study released by Bankrate, Inc. shows that the cost of
getting a mortgage continues to rise despie a soft housing market.
The 2007 average closing cost of $2,736 has gone up to an average
of $3,118 in 2008, a 14 percent increase. In the study's
geographical breakdown, New York City leads the nation at an
average fee of $4,016, with Texas, Buffalo, Miami and Oklahoma
rounding out the top five. North Carolina is the least expensive
area with an average fee of $2,650, replacing Indiana (now #45 with
an average fee of $2,878) at the bottom of the list. To view the
complete study and analysis of the data, as well as tips on what to
look for in closing costs when getting a mortgage, click here.
"Often times, consumers forget about the added fees involved in
buying a home," said Holden Lewis, senior reporter with
Bankrate.com. "Closing costs can be extremely expensive if not
researched thoroughly. Keeping closing costs at a minimum can make
a big difference to homebuyers during difficult economic
Bankrate's Closing Cost study was conducted in June and July of
2008 by obtaining four to nine good faith estimates (GFEs) from the
Web sites of online lenders. Researchers picked a ZIP code in some
of the largest cities in each state and requested information on
the closing costs for at $200,000 loan. They requested fees on a
30-year, fixed-rate mortgage for a borrower with a 20 percent down
payment and good credit to buy a single-family house. Bankrates
survey includes lenders' origination fees and title and settlement
fees, and not taxes or prepaid items.
For more information, visit www.bankrate.com.