The average cost to close a residential loan in the U.S. dropped 7% over the past year to $3,754, according to Bankrate.com’s eighth annual closing costs survey.
The firm reported that title insurance and other third-party fees fell 12% from 2011, while origination fees edged down 1%.
Bankrate said it surveyed “up to 10 lenders in all 50 states plus the District of Columbia in June 2012.”
Researchers working for the firm obtained online good faith estimates for a $200,000 mortgage to buy a single-family home with a 20% down payment.
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.
“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,” said Greg McBride, CFA, Bankrate.com’s senior financial analyst.
For the third straight year, New York posted the nation’s most expensive closing costs at an average of $5,435. The next most expensive states include: Texas, Pennsylvania, Florida and Oklahoma.
The least expensive state are Missouri ($3,006 on average), followed by Kansas, Colorado, Iowa and Arkansas.
