Which State is Paying the Most in Closing Costs?

There was a study done earlier this month done by Bankrate.com that concluded Hawaii is paying the most in closing costs. They also have to work more hours every month just to afford their mortgage payment. They start their absurdly high mortgage payments from day one. They lead the nation in highest mortgages.

The CFPB TRID rule which came about last October has stated that estimated amounts homebuyers pay for closing costs are more accurate than ever. These costs include fees the lenders charge, any third-party fees for services like appraisals, etc.

Bankrate.com survey pool consisted of an average of online loan estimates for a $200,000 mortgage single-family home, which also had a 20% down payment.

Their study found that the average closing cost in Hawaii had $1,200 in origination fees, and $1,450 in third-party fees. The next state was New York with an average closing cost of $2,560. Not so far down the list were North Carolina, Delaware, South Carolina, and Connecticut.

The lower tier states were Pennsylvania at $1,840. The states who average below $2,000 were Wisconsin, Kentucky, South Dakota, Oklahoma, and Missouri.

The average closing cost for the entire nation was $2,130.

The cool thing about the CFPB new rules they published in October was it made closing cost estimates much more accurate. Lenders essentially must calculate all the costs ahead of time, allowing homebuyers to shop ahead of time and make sure they have the money needed. 

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