According to a new study recently released by Bankrate Inc. the average cost of obtaining a mortgage has dropped to around 12% nationwide over the past year.
The national study stated that the average closing fees for a $200,000 mortgage, with 20% down and a 30-year fixed-rate loan, totaled $2,732, which is down from $3,118 from last year and closing costs have not been this low since 2007.
Marking the 4th-highest closing costs in the United States was San Francisco, which had an average expense of $3,117, which is down 6% from $3,321 in 2008 where San Francisco ranked 11th.
Texas and New York hold the number 1 and 2 spots respectively which is a switch from last year.
For the same mortgage mentioned above the closing costs in Texas averaged $3,855 and in New York they averaged $3,408.
Coming in last was Nevada where their closing costs averaged $2,276.
The downward price shift in the national real estate market has created this decline in closing costs.
The information for this study was conducted by researchers who chose ZIP Codes in the largest cities in each state and averaged the closing costs for a $200,000 home mortgage.
The study showed that of all 50 states ironically California was the only state to be divided in two with Los Angeles and San Francisco the two deciding factors. Closing fees on average in Los Angeles came in at $2,861, which is down 12% from $3,250 in 2008. That put Los Angeles in the 14th position for this years study.
The national survey included lenders' origination fees and title and settlement fees. Insurance, taxes, H.O.A. dues and other prepaid items were not part the study.