The national average for mortgage closing costs is currently $4,876, according to recent data released by ClosingCorp, a leading provider of residential real estate closing cost data and technology for the mortgage and real estate services industries.
According to the data, below are the five states that have the lowest average closing costs and the five states with the highest average closing costs. However, keep in mind that this is an average and even within these states, closing costs can differ substantially from locality to locality.
“Closing costs can vary significantly, depending on the state or county a homebuyer lives in. For example, five counties in New York—Kings, Queens, Bronx, Richmond and Suffolk—had the highest closing costs, going well above the national and state average, due to having some of the highest transfer taxes in the country,” said Bob Jennings, chief executive officer of ClosingCorp.
“Of course, many homebuyers are still surprised closing costs are even required—making it vital for our company to keep educating borrowers and helping lenders improve the accuracy of their loan estimates in order to eliminate any surprises,” he said.
The charges that are included in closing costs can typically be broken down into three broad categories. To help you better understand these, we’ve listed them below:
While some of these costs will be about the same, regardless of where you live, some items such as property taxes will vary greatly from place to place. That’s because the tax rates in different counties and cities vary greatly, and property taxes will also be higher or lower depending on the value of the home being purchased.
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