Closing costs

Copule looking at townhouse for sale © Dragon Images/Shutterstock.com

With fees for everything from the appraisal to tax service, getting a mortgage is costly. Closing costs typically add up to thousands of dollars. The good news is that, each year, Bankrate conducts a survey of closing costs in all the states. See what the average fees are for your state, and let us help you save on closing costs when mortgage shopping.

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2015 Mortgage Fees

Mortgage fees: Shop around

Want to reduce your mortgage closing costs? Get multiple offers and compare them.

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Closing costs: Over the years

Click through the timeline below to see the closing cost averages of each state over the years.

Year
Highest
Lowest
Texas:$3,046
Nevada:$2,265
Hawaii:$2,919
Wisconsin:$2,119
New York:$5,435
Missouri:$3,006
New York:$6,183
Arkansas:$3,378
New York:$5,623
Arkansas:$3,007
Texas:$3,885
Nevada:$2,276
Year
Highest
Lowest
New York:$4,015
North Carolina:$2,650
New York:$3,830
Indiana:$2,339
New York:$3,887
Missouri:$2,713
New York:$3,907
Wyoming:$2,101
Pennsylvania:$9,826
Nebraska:$3,749
N/A:$3,887
N/A:$2,713

Terms to know

  • Origination, broker, lender or originator
    A fee charged to create a home loan. It's often a set percentage of the mortgage amount.
  • Discount points
    A fee in the form of mortgage interest paid upfront. In exchange for this fee, the lender reduces the interest rate. One point is equal to 1 percent of the loan amount.
  • Appraisal
    A fee that is passed on to a company that renders an opinion about the real value of the home, independent of its listing or negotiated price. That value is then compared against what the borrower has agreed to pay.
  • Credit report
    A fee charged to order a history of your financial life. It includes details about your behavior as a bill payer, the amount of debt you owe, your available credit and any inquiries that companies make to obtain this information, such as your mortgage lender. A good credit report means better loan terms.
  • Tax service
    A fee to cover the cost of hiring a company to verify the amount of real estate taxes due and making sure they're paid.
  • Flood certification
    A fee that covers the assessment of whether a property is in a flood zone. If it is, the new homeowner must buy a flood insurance policy.
  • Title services
    Charges for administrative costs (such as title search) associated with the delivery of title insurance, as well as the services provided by a title or escrow agent.
  • Title insurance
    A policy that guarantees that an owner has the title to a property and can legally transfer it to someone else. Should a problem arise, the title insurer pays any legal damages. A policy may protect the mortgage lender, the homebuyer or both.
  • Attorney, closing or settlement
    The amount paid to an attorney for witnessing the mortgage loan transaction.
  • Document preparation
    A fee a lender charges to a borrower for producing the documents signed at the closing table.
  • Inspections (pest, etc.)
    A fee paid to a certified person who searches the dwelling for termites and other destructive creatures.
  • Postal/courier
    This fee covers what it costs a lender to send paperwork to the other entities involved in the mortgage transaction.
  • Survey
    A fee charged to hire a licensed surveyor to get an accurate measurement of the property and its boundaries.
  • Wire transfer fee
    The amount charged to transfer funds needed to close on a home loan.
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