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New York most expensive state to close on a home, Vermont 40th

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Mon Aug 16 2010

A new study released by Bankrate, Inc. reveals that the costs associated with buying a home are on the rise. Bankrate's 2010 Closing Costs Survey reveals that the average origination and title fees on a $200,000 mortgage this year totaled $3,741, up from $2,732 in 2009. New York state was highest at $5,623; Vermont was 40th at $3,372.

In the study's geographical breakdown, with New York leading the nation Texas, Utah, San Francisco, and Los Angeles roundg out the top five. Arkansas is the least expensive area with an average fee of $3,007, replacing Nevada, now number 34, at the bottom of the list.

One of the reasons for such a dramatic rise in the average estimated closing costs across the nation has to do with new regulations implemented in January of this year. When providing a potential borrower a Good Faith Estimate (GFE) of costs, regulations now require lenders to provide a Title and Closing Fee estimate within 10 percent of what the final cost will be; in previous years, estimates could fall lower on the spectrum without penalty for the lender.

"The big rise in average closing costs may scare some homebuyers, but it's important to keep things in perspective," said Greg McBride, CFA, senior financial analyst for Bankrate.com. "Increased regulation on lenders' GFEs means more accurate estimates and less expenses popping up for consumers on the back end."

For this study, Bankrate surveyed one area in 49 states, two areas in California (Los Angeles and San Francisco) and theDistrict of Columbia. 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. Bankrate's survey includes lenders' origination fees and title and settlement fees, and not taxes or prepaid items.

NEW YORK, Aug. 16 /PRNewswire-FirstCall/ -- The full results of the study can be seen here at www.bankrate.com/finance/mortgages/2010-closing-costs/.

   

2010

2009

State or city

Origination

Title and Closing

Total

  

1

2

New York

$2,015

$3,608

$5,623

  

2

1

Texas

$1,539

$3,169

$4,708

  

3

16

Utah

$1,431

$3,174

$4,605

  

4

4

California - San Fran

$1,386

$3,181

$4,566

  

5

14

California - Los Angeles

$1,419

$2,987

$4,406

  

6

6

Alaska

$1,936

$2,391

$4,327

  

7

8

Oklahoma

$1,352

$2,902

$4,254

  

8

7

Pennsylvania

$1,340

$2,897

$4,236

  

9

28

New Jersey

$1,338

$2,772

$4,110

  

10

27

Idaho

$1,365

$2,711

$4,077

  

11

18

Massachusetts

$1,548

$2,477

$4,025

  

12

3

Florida

$1,237

$2,751

$3,987

  

13

9

Ohio

$1,446

$2,540

$3,985

  

14

42

Rhode Island

$1,989

$1,983

$3,972

  

15

39

Arizona

$1,437

$2,514

$3,950

  

16

34

Wyoming

$1,460

$2,462

$3,922

  

17

38

Minnesota

$1,403

$2,517

$3,920

  

18

23

Louisiana

$1,491

$2,406

$3,897

  

19

15

Virginia

$1,528

$2,355

$3,883

  

20

19

Michigan

$1,424

$2,380

$3,804

  

21

11

North Dakota

$1,515

$2,285

$3,800

  

22

41

DC

$1,363

$2,322

$3,685

  

23

35

Delaware

$1,401

$2,248

$3,649

  

24

20

West Virginia

$1,421

$2,216

$3,637

  

25

51

Kansas

$1,453

$2,161

$3,615

  

26

45

Nebraska

$1,529

$2,079

$3,608

  

27

10

Washington

$1,452

$2,154

$3,607

  

28

31

Georgia

$1,402

$2,201

$3,604

  

29

26

South Carolina

$1,366

$2,155

$3,522

  

30

30

Alabama

$1,529

$1,983

$3,512

  

31

43

Illinois

$1,422

$2,083

$3,505

  

32

12

Tennessee

$1,450

$2,033

$3,483

  

33

13

New Mexico

$1,401

$2,079

$3,480

  

34

52

Nevada

$1,248

$2,223

$3,471

  

35

50

Indiana

$1,452

$2,013

$3,465

  

36

21

Hawaii

$1,303

$2,139

$3,442

  

37

49

Maine

$1,456

$1,976

$3,432

  

38

40

Maryland

$1,481

$1,921

$3,402

  

39

24

Connecticut

$1,408

$1,983

$3,391

  

40

48

Vermont

$1,483

$1,889

$3,372

  

41

29

Colorado

$1,449

$1,917

$3,366

  

42

32

South Dakota

$1,458

$1,905

$3,363

  

43

36

New Hampshire

$1,533

$1,825

$3,358

  

44

47

Missouri

$1,344

$2,012

$3,356

  

45

44

Kentucky

$1,448

$1,893

$3,341

  

46

25

Mississippi

$1,480

$1,855

$3,335

  

47

5

Oregon

$1,450

$1,883

$3,333

  

48

22

Wisconsin

$1,491

$1,812

$3,303

  

49

33

Montana

$1,409

$1,890

$3,298

  

50

37

Iowa

$1,477

$1,784

$3,261

  

51

46

North Carolina

$1,476

$1,779

$3,255

  

52

17

Arkansas

$1,466

$1,542

$3,007

  
   
           

 

Source: Bankrate, Inc. 8.16.2010

The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services,Savingforcollege.com, Fee Disclosure, InsureMe CreditCardGuide.com, Bankaholic, CreditCards.com and NetQuote.  Each of these businesses helps consumers to make informed decisions about their personal finance matters. The company's flagship brand, Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. Bankrate.com is the leading aggregator of rates and other information on more than 300 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. Bankrate.com reviews more than 4,800 financial institutions in 575 markets in 50 states. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO), America Online (NYSE: AOL), The Wall Street Journal and The New York Times (NYSE: NYT). Bankrate.com's information is also distributed through more than 500 newspapers.  Bankrate, Inc. was acquired by Apax Partners, one of the world's leading private equity investment groups, in September 2009.  Apax operates across the United States, Europe and Asia and has more than 30 years of investing experience. For more information on Apax, visit:www.Apax.com.