Aside from the down payment, one of the biggest costs of purchasing a home is the cumulative of fees and charges that need to be paid at closing.
Typically, mortgage closing costs sum up to around 2 to 6 percent of the purchase price of the home. What makes up these costs is dependent on the lender and the type of mortgage.See today’s mortgage rates!
Currently, the nationwide average for mortgage closing costs is $4,876. However, in certain metros and regions in the country, state and local averages can run up to five figures.
The difference in closing cost charges can determine whether a mortgage is affordable or not.
Residential real estate closing cost data and technology company ClosingCorp recently released data on average closing costs in country. The data exposed which areas in the country have the most affordable and most expensive closing costs.
Top States with the Most Expensive, Affordable Costs of Closing
Total closing cost average
Average purchase price
Meanwhile, states with the lowest closing costs include:
Average total closing cost
Average purchase price
The company preconfigured various loan scenarios based on the type of the loan, its amount, and the purpose. To derive its fee estimates, an 80 percent LTV or loan-to-value ratio is assumed. They also applied the average sales price at the local level to the formulas in calculating fees. They then run these scenarios against existing verified rates and fees data.Get help with your financing needs.
What costs are included at closing?
The costs of closing depend on several factors such the location of the property you’re going to buy or the type of loan you’re financing it with. But no matter the variations, they typically include these universal fees:
- Application Fee
- Attorney Fee
- Closing Fee or Escrow Fee
- Courier fee
- Credit report
- Escrow deposit for property taxes and mortgage insurance
- Flood determination or Life of loan coverage
- Home inspection
- Homeowners association transfer fees
- Homeowners’ insurance
- Lead-based paint inspection
- Loan discount points
- Owner’s policy title insurance
- Origination fee
- Pest inspection
- Prepaid interest
- Private mortgage insurance
- Property tax
- Recording fees
- Survey fee
- Title company title search or exam fee
- Transfer taxes
- Underwriting fee
One of the most common fees that significantly influence the closing costs is the transfer fee. These taxes can widely vary by jurisdiction. It’s either the buyer, seller, or both parties choose to pay transfer taxes based on the property’s sale price when the property is turned over to a new owner.
ClosingCorp’s new data serves a valuable point of reference for home buyers looking to save more on their purchase costs.Click to See the Latest Mortgage Rates»