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D.C. has fifth lowest average closing costs in nation

Monday - 8/4/2014, 12:14pm  ET

HOUSE_FOR_SALE.jpg
Mortgage closing costs jumped 6 percent over the past year. (AP)

Sophie Ho, special to wtop.com

WASHINGTON -- D.C. may be one of the most expensive U.S. cities in which to live, but a new report by personal finance website Bankrate shows the District has the fifth lowest mortgage closing costs.

In the report, Bankrate requested good faith estimates for a $200,000 mortgage loan from up to 10 lenders in each state and D.C., with a hypothetical 20 percent down payment and good credit.

Closing costs are charged by lenders and third parties when a consumer gets a mortgage, such as fees to process credit card reports, inspection costs, underwriting fees or appraisal fees.

In general, the website found that mortgage closing costs jumped 6 percent over the past year, and now average at $2,539 on a $200,000 loan. D.C. ranked fifth lowest at $2,402.

Texas ranked first with the highest average closing costs at $3,406, while Nevada was the cheapest at $2,265.

But buyers should beware that their closing costs would likely be higher in real life. Not included in the report were title insurance, title search, taxes, other government fees or escrow fees.

Even more, the Office of the Chief Financial Officer predicted that the average sales price of a District home will hit $769,800 in 2014 -- jumping to $813,600 in 2015. Currently, median single family home price in D.C. is around $600,000, while the average price is $713,000.

The full list is below.

Closing costs

2014
rank
StateLender's
origination fees
Third-party
fees
Origination plus
third- party fees
1Texas$2,280$766$3,046
2 Alaska$2,195$703$2,897
3 New York$2,109$783$2,892
4 Hawaii$2,009$799$2,808
5 Wisconsin$2,035$671$2,706
6 Nebraska$1,975$679$2,654
7 Vermont$1,979$670$2,649
8 Florida$1,982$666$2,648
9 New Hampshire$1,975$666$2,641
10New Jersey$1,891$733$2,625
11Alabama$1,967$646$2,613
12North Carolina$1,887$714$2,602
13North Dakota$1,936$663$2,599
14Kansas$1,956$625$2,582
15Louisiana$1,928$652$2,580
16Rhode Island$1,931$645$2,576
17Massachusetts$1,871$693$2,564
18South Dakota$1,940$623$2,563
19Mississippi$1,931$629$2,560
20Oregon$1,896$663$2,559
21Connecticut$1,885$670$2,555
22California$1,881$661$2,542
23Utah $1,889$648$2,537
24Wyoming$1,890$628$2,518
25* West Virginia$1,805$711$2,516
25* Delaware$1,771$745$2,516
25* New Mexico$1,761$755$2,516
28Pennsylvania$1,907$603$2,511
29Oklahoma$1,908$591$2,498
30Maine$1,854$643$2,497
31South Carolina$1,786$708$2,494
32Montana$1,796$695$2,491
33Illinois$1,841$640$2,481
34Virginia$1,840$639$2,479
35Iowa $1,773$675$2,448
36*Idaho$1,800$641$2,440
36* Indiana$1,796$644$2,440
38Minnesota$1,836$619$2,436
39Colorado$1,817$619$2,436
40* Washington$1,830$605$2,435
40* Michigan$1,835$600$2,435
42Georgia$1,766$667$2,433
43Kentucky$1,790$640$2,430
44Arizona$1,810$615$2,425
45Arkansas$1,815$605$2,420
46Maryland$1,836$568$2,404
47District of Columbia$1,791$612$2,402
48Ohio $1,707$685$2,392
49Missouri$1,749$638$2,387
50Tennessee$1,746$620$2,366
51Nevada$1,570$695$2,265
      
 Average$1,877$662 $2,539

*Denotes a tie

Bankrate.com surveyed up to 10 lenders in each state in July 2014 and obtained online good faith estimates for a $200,000 mortgage to buy a single-family home with a 20 percent down payment in the state's largest 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.

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