Texas ranks as the most expensive state to obtain a mortgage, with closing costs totaling more than $3,000 in third-party and lender’s origination fees, according to mortgage data compiled in a table by consumer financial services company Bankrate.
The state boasts $3,046 in estimated closing cost fees for a $200,000 mortgage loan for a single-family house. Broken down, the lender’s origination fees in Texas cost $2,280 and third-party fees amount to an estimated $766.
In comparison, Nevada had the least expensive closing costs, totaling just over $2,260 — $1,570 for lender’s fees and $695 for third-party fees.
All 50 states, plus Washington, D.C., were surveyed by Bankrate, which requested good faith estimates for a $200,000 mortgage loan from up to 10 lenders in each region. The hypothetical loan was for a purchase of a single-family house in the state’s largest city, using a 20% down payment with excellent credit.
Rounding out the top five in the list are Alaska, New York, Hawaii and Wisconsin, which, respectively, had total costs of $2,897, $2892, $2808 and $2,706. Among the least expensive states to obtain a mortgage include Tennessee, Missouri, Ohio and Washington, D.C., with closing costs between $2,366 and $2,402.
Costs include fees charged by lenders, as well as third-party fees for services such as appraisals and credit reports. But Bankrate’s table doesn’t account for highly variable costs, including title insurance, title search, taxes and other government fees and escrow fees, which may mean the states could have even higher closing costs.
View the rankings here.
Written by Emily Study