Nationwide, the average origination and title fees on a $200,000 mortgage are approximately $4,070, 8.8 percent higher than just one year ago, according to Bankrate Inc.'s 2011 Closing Costs Survey. New York leads the nation with an average fee of $6,183. Texas, Utah, San Francisco and Idaho round out the five most expensive areas. Arkansas is the least expensive area, with an average fee of $3,378.
Most of the rise in closing costs is tied to fees charged directly by lenders. On average, lenders charge about $1,614 in origination fees this year, up 10.3 percent from last year. Origination fees include lender charges for services, such as underwriting and processing.
"Interest rates get a lot of attention, and rightfully so, but it's also important for consumers to compare lender fees when shopping for a loan," said Greg McBride, CFA, senior financial analyst for Bankrate Inc.
Bankrate surveyed up to 10 lenders in each state in June 2011 and obtained online Good Faith Estimates (GFEs) for a $200,000 mortgage to buy a single-family home with a 20 percent downpayment. Costs include fees charged by lenders, as well as third-party fees for services such as appraisals and title insurance. The survey excludes taxes, property insurance, association fees, interest and other prepaid items.