Jul 31, 2014

Most and least expensive states to close a mortgage

 Mortgage closing costs continue to report bad news as numbers maintain their upward trend, not boding well for lenders.

According to Bankrate, mortgage closing costs rose 6% over the past year and now average $2,539 on a $200,000 loan.

Origination fees increased 9% to $1,877, while third-party fees rose 1% to $662.

“New mortgage regulations are the biggest reasons why closing costs went up over the past year,” said Holden Lewis, senior mortgage analyst with Bankrate.

“The good news is that some lenders have not increased fees. To get the best deal, consumers should compare good faith estimates from at least three different lenders,” Lewis added.

Back in June, HousingWire reported that independent mortgage banks and mortgage subsidiaries of chartered banks posted a net loss of $194 on each loan they originated in the first quarter of 2014, significantly down from $150 in profit per loan in the fourth quarter of 2013.

“The significant overall production volume decline in the first quarter hurt mortgage bankers,” said Marina Walsh, Mortgage Bankers Association’s vice president of industry analysis.

“Purchase volume did not pick up, while refinancing volume dropped and costs continued to rise. Given these conditions, companies that managed to break even in the first quarter should consider that a reasonable outcome,” Walsh added.

These are some of the closing cost Fees

(Lender’s origination fee, third-party fees, origination plus third-party fees)

51. Nevada: Costs $1,570, $695, $2,265
50. Tennessee: $1,746, $620, $2,366
49. Missouri: $1,749, $638, $2,387
48.  Ohio: $1,707, $685, $2,392
47. District o Columbia: $1,791, $612, $2,402

Top 5 most expensive states for closing costs

5. Wisconsin: $2,035, $671, $2,706
4. Hawaii: $2,009, $799, $2,808
3. New York: $2,109, $783, $2,892
2. Alaska: $2,195, $703, $2,897
1. Texas: $2,280, $766, $3,046