Texas Tops List of States With Most Expensive Mortgage Closing Costs

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. 

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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

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  • Virginia sure hits the borrower with their state and county taxes on a reverse mortgage as its 3.33% per 1000 on 1 1/2 times the appraised value. Thats always a pretty hard pill to swallow for some folks, especially in the higher value homes.

    • wealthone,

      But the article does not address reverse mortgages per se.

      Florida has an awful intangible’s tax as well that kicks in on mortgage transactions.

      By the way what does “3.33% per 1,000” mean? 3.33% normally means $3.33 on every $100.

      “3.33% per 1,000” seems to be either $3.33 per $100 or $0.333 per $100. If the latter case, that is less than $1,000 on a $200,000 transaction.

      • lets put it this way, a $700,000 home in Northern Virginia will carry a $3124 recording fee- that’s pretty steep

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