Don’t Feel Like a Chump When You Close on Your New Mortgage

Mortgage closing costs dropped 7 percent over the past year, falling to $1,847 on a $200,000 loan, according to a new analysis by Bankrate.
Typical closing costs varied by state, ranging from $2,163 in Hawaii to $1,613 in Ohio. You can find the average rate for your state in the table below.
Lenders compete for business, so shopping around with at least three mortgage providers can help you reduce the fees associated with your loan. “Homebuyers have more say over closing costs than they think,” Bankrate Senior Mortgage Analyst Holden Lewis said in a statement.
Even as banks lower their mortgage fees, they’re increasing fees in most other categories, according to MoneyRates.com.
While lower mortgage fees are good news for homebuyers and those refinancing their loans, the average saving amount to just $140. That’s not much relative to the total costs associated with buying a house. The average down payment for homebuyers in the first quarter of 2015 was $57,710, for example.
Related: Want Your Own Home? Here’s How to Do the Math
The costs don’t stop once the buyers move in. On top of mortgage payments, homeowners face an average of more than $6,000 in additional costs related to their house, including homeowners insurance, property taxes and utilities.
The National Association of Realtors expects home prices to increase 6.5 percent this year to a median $221,900, which would put them at the same level as their 2006 record high.
For buyers, better news than the lower mortgage fees is that rates remain relatively low, falling to 3.98 percent last week, per Freddie Mac.
Closing costs | |||
---|---|---|---|
State | Average origination fees | Average third-party fees | Average origination plus third-party fees |
Alabama | $1,066 | $776 | $1,842 |
Alaska | $935 | $922 | $1,857 |
Arizona | $1,208 | $761 | $1,969 |
Arkansas | $1,057 | $760 | $1,817 |
California | $937 | $896 | $1,834 |
Colorado | $1,192 | $719 | $1,910 |
Connecticut | $1,074 | $960 | $2,033 |
Delaware | $904 | $924 | $1,828 |
District of Columbia | $1,077 | $718 | $1,794 |
Florida | $1,028 | $778 | $1,806 |
Georgia | $1,058 | $821 | $1,879 |
Hawaii | $1,033 | $1,130 | $2,163 |
Idaho | $894 | $788 | $1,682 |
Illinois | $1,080 | $767 | $1,847 |
Indiana | $1,067 | $770 | $1,837 |
Iowa | $1,161 | $762 | $1,923 |
Kansas | $1,047 | $753 | $1,800 |
Kentucky | $1,060 | $737 | $1,797 |
Louisiana | $1,060 | $817 | $1,877 |
Maine | $897 | $830 | $1,727 |
Maryland | $1,093 | $742 | $1,835 |
Massachusetts | $905 | $851 | $1,756 |
Michigan | $1,072 | $746 | $1,818 |
Minnesota | $1,067 | $689 | $1,757 |
Mississippi | $1,046 | $837 | $1,884 |
Missouri | $1,040 | $792 | $1,833 |
Montana | $1,062 | $855 | $1,917 |
Nebraska | $1,047 | $770 | $1,817 |
Nevada | $1,002 | $848 | $1,850 |
New Hampshire | $1,084 | $750 | $1,835 |
New Jersey | $1,181 | $913 | $2,094 |
New Mexico | $1,076 | $876 | $1,952 |
New York | $1,032 | $879 | $1,911 |
North Carolina | $1,036 | $875 | $1,911 |
North Dakota | $1,045 | $791 | $1,836 |
Ohio | $933 | $681 | $1,613 |
Oklahoma | $1,027 | $734 | $1,761 |
Oregon | $1,080 | $785 | $1,864 |
Pennsylvania | $1,055 | $678 | $1,733 |
Rhode Island | $1,093 | $802 | $1,896 |
South Carolina | $1,058 | $837 | $1,895 |
South Dakota | $1,055 | $704 | $1,759 |
Tennessee | $1,033 | $773 | $1,806 |
Texas | $1,031 | $833 | $1,864 |
Utah | $909 | $788 | $1,697 |
Vermont | $1,074 | $862 | $1,936 |
Virginia | $1,050 | $787 | $1,837 |
Washington | $1,077 | $824 | $1,901 |
West Virginia | $1,067 | $904 | $1,971 |
Wisconsin | $1,047 | $723 | $1,770 |
Wyoming | $874 | $814 | $1,689 |
Average | $1,041 | $807 | $1,847 |
Bankrate.com surveyed up to 10 lenders in each state in June 2015 and obtained online Good Faith Estimates for a $200,000 mortgage to buy a single-family home with a 20 percent down payment in a prominent city. Costs include fees charged by lenders, as well as third-party fees for services such as appraisals and credit reports. The survey excludes title insurance, title search, taxes, property insurance, association fees, interest and other prepaid items.
Top Reads from The Fiscal Times:
- You’re Richer Than You Think. Really.
- The 10 Fastest-Growing Jobs Right Now
- The 5 Worst Cities to Raise a Family
Maybe Don’t Count Out Obamacare Repeal Just Yet

Sen. Bill Cassidy (R-LA) told reporters on Friday that he’s getting close to securing enough votes to pass the last-ditch ACA repeal and replacement bill he’s put forth with Sens. Lindsey Graham (R-SC), Dean Heller (R-NV) and Ron Johnson (R-WI).
“I am pretty confident we’ll get there on the Republican side,” Cassidy said. “We’re probably at 48-49 [votes] and talking to two or three more.” And Senate Majority Leader Mitch McConnell has asked the Congressional Budget Office to estimate the effects of the Cassidy-Graham bill, which would speed up the scoring process.
Of course, those last two or three votes have been the challenge for the GOP all along, and they may not be any easier to round up this time. Sen. Rand Paul (R-KY), who voted for a prior repeal bill, said Friday that he won't support this one. Plus, opponents are already stepping up their criticisms about the effects of the bill. And time is running out: Cassidy and his colleagues only have until September 30 to pass the bill this year under a process that would require only 50 supporters in the Senate. So while the Obamacare repeal may still have life, it remains a longshot.
Orrin Hatch Signals Just How Complicated Tax Reform Will Be

GOP leaders said Wednesday that they'd issue a more detailed framework of their tax overhaul the week of September 25. But while lawmakers are eager to get more details about the outline being hashed out by the so-called Big Six team of negotiators, Republicans are still divided on key elements of the plan — going from blueprint to bill is bound to be a contentious process.
In his opening remarks at a Senate Finance Committee hearing today on individual tax reform, Sen. Orrin Hatch (R-UT) said the plan from the Big Six — of which he is one — "will not dictate the direction" the tax-writing committee takes. "Anyone with any experience with the Senate Finance Committee knows that we are not anyone’s rubber stamp," he said. "If a bill – particularly on something as consequential as tax reform – is going to pass in this committee, the members of the committee will have to be involved in putting it together."
Oh, and remember: Republicans also need to agree on a budget before they can push through tax reform without Democratic votes.
Aging Baby Boomers Drive Down the Uninsured Rate
About 10,000 boomers turn 65 every day, becoming eligible for Medicare on their birthdays. The Census Bureau says that the sheer number of boomers entering Medicare is affecting the uninsured rate for the whole population. That rate fell to 8.8 percent in 2016, down from 9.1 percent a year earlier, with most of the decline driven by the aging of the post-war generation. (Wall Street Journal)
Social Security Kept 26.1 Million Out of Poverty Last Year
Social Security kept more than 26 million people out of poverty last year, according to a new report from the Census Bureau. Refundable tax credits such as the one for earned income kept 8.2 million people out of poverty, while food stamps lifted 3.6 million above the line, housing subsidies reduced the number of poor people by 3.1 million and unemployment insurance kept 680,000 out of poverty. Overall, the Census Bureau reported, the poverty rate was 12.7 percent, while a more sophisticated alternative measure that factors in government programs for low-income families put the rate at 13.9 percent, down from 14.5 percent in 2015.
Read more about the new Census Bureau numbers here.
Tax Reform on Menu for Trump's Dinner with Dems
President Trump is set to host three moderate Democratic senators for dinner on Tuesday as part of his push for tax reform, Politico reports. The Democrats on the guest list: Sens. Joe Manchin of West Virginia, Heidi Heitkamp of North Dakota and Joe Donnelly of Indiana, all of whom are up for reelection in 2018 in states Trump won last November. Vice President Mike Pence and GOP Sens. Orrin Hatch of Utah, John Thune of South Dakota and Pat Toomey of Pennsylvania are also slated to attend.