While most homeowners are focused on the rising cost of home prices, they might not realize closing costs are rising as well. According to RIS Media, “Each year lender’s origination fees account for the lion’s share of the increase. Since 2010, origination fees, which include lender’s charges for services such as underwriting and processing have increased 27.1%. Bankrate.com’s annual survey of closing costs found that most of the rising cost is tied to fees charged directly from lenders.”
Five states led the way in increased closing costs: Texas, Alaska, Hawaii, Wisconsin and New York.
On the other end of the spectrum, Ohio, Tennessee, Nevada, Missouri and Washington DC had the lowest closing costs.
Some lenders have not increased their fees. Buyers should compare good faith estimates from at least three different lenders to get the best deal.
Below is a comparison of closing cost for New York and Connecticut, prepared by Kim Weintraub from Atlantic Residential Mortgage. If you are considering buying a home in either state know your options and be aware of all fees.
***NY mortgage tax is standard on all loans and is based on the loan amount***
***Mansion tax is paid on any purchase price above $1MM***