For anyone who’s taken out a mortgage recently, here’s some news that, unfortunately, won’t come as a shock: New York has the third-highest mortgage closing costs in the country.
According to new data from research firm Bankrate.com, closing costs in New York average $2,892 on a $200,000 home loan. That includes $2,109 for the lender’s origination fees and another $783 for third-party fees.
And it’s only getting worse, compliments of increasing rules and regulations. Nationally, closing costs averaged $2,539, a 6 percent increase in the past year. Origination fees rose 9 percent to $1,877, while third-party fees increased 1 percent to $662.
“New mortgage regulations are the biggest reasons why closing costs went up over the past year,” said Bankrate.com senior mortgage analyst Holden Lewis, while noting that “some lenders have not increased fees.”
Only Texas, at $3,046, and Alaska, at $2,897, were higher than New York. By contrast, the lowest were in Nevada, averaging $2,265; Tennessee, at $2,366; and Missouri, at $2,387.
To assemble its data, Bankrate surveyed up to 10 lenders in all 50 states and Washington, D.C., in June, obtaining online “good faith estimates” for a single-family home with 20 percent down.
The data includes fees charged by lenders as well as appraisals and other third-party fees, but not taxes, title fees, property insurance, association fees, interest and other prepaid items.
Broken down by item, New York’s average fees included $1,015 in origination points, $343 for the application fee, $60 for document preparation, $1,063 for the broker, originator or lender fee, $495 for processing, 473 for tax service, $200 for underwriting, $25 for wire transfer, $399 for an appraisal, $1,100 for attorney’s fees, $17 for a credit report, $9 for flood certification, $125 for pest and other inspections, $75 for postage and $470 for the survey.