Looking at Closing Costs Around the Country
When it comes to home ownership, every state is a bit different. Not only can the laws vary, but so can the prices of fees associated with buying a home. Many of these fees are all bundled together into what are known as closing costs. If you’ve taken out a home loan, you’ve paid these costs. Like housing prices, these fees are also subject to a changing market. Let’s have a look at some of the facts about closing costs around the country right now:
- Closing Costs Have Increased: Overall closing costs in America have gone up. On average, the amount has gone up to over $1,000 to close on a $200,000 home. This is caused by an increase in the work that lenders must do to close a loan (more credit checks and verifications) as well as increasing appraisal and title insurance fees.
- New York and Texas on Top: Among the most expensive states to close in are New York and Texas. This year, homes in New York were found to have average closing costs of over $5,000. In today’s market, New York is more expensive, but that could change. Other notably high closing cost states include California, Utah, and Alaska.
- Arkansas on the Bottom: Among the lowest states to close on a home loan is Arkansas, with the average cost of closing sitting at just over $3,000. Other less expensive states to close in are North Carolina, Iowa, and Montana.
Closing costs are something that everyone who gets involved in the mortgage world is going to have to deal with. Understanding these costs today is important if you want to make the right decisions about your mortgage. See the Bills.com article Seal the Deal: What to Expect at Closing to learn more about the closing process.