Texas has the 19 th highest closing costs in the nation, according to a new report by Bankrate.com, writes Jessica Bryant of Dallas Biz Journals. Based on a $200,000 loan, closing costs in Texas average $2,175, which is more than two times lower than they were reported in 2011 and just slightly above the current national average of $2,128.
Holden Lewis, Bankrate.com’s senior mortgage analyst, said closing costs are more accurate now than they were in the past, “thanks to the new and improved mortgage disclosures that the CFPB introduced last October.” These new disclosures mandate that lenders must make borrowers aware of all fees upfront.
Lewis stresses that these new regulations are great for consumers because they allow them to comparison shop with more confidence.
Additionally, Lewis states that Bankrate.com has updated their survey to improve accuracy. In 2011, the survey still accounted for title fees. However, after speaking with several different lenders, Bankrate.com determined that the title fee estimates being given were not complete and therefore should not be included in the survey. This explains the large drop in reported closing costs over the past five years in Texas.
Hawaii currently takes the lead in closing costs, while Pennsylvania has the lowest. Hawaii has an average of $2,655 while Pennsylvania has an average closing cost of $1,837. Other states with the highest closing costs include New York, North Carolina, Delaware, and South Carolina. Among the lowest are Wisconsin, Kentucky, South Dakota, and Oklahoma.