Buyers who take the time to shop around for their mortgages and some of their settlement services are saving hundreds of dollars on some of their closing costs, according to a recent Bankrate survey. Those who got more involved in their homebuying experience saw their closing costs drop as much as 7 percent, Bankrate said.

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Takeaways:

  • Homeowners who shopped around for mortgages and settlement services saw closing costs drop as much as 7 percent.
  • Buyers in Hawaii paid $2,163 in closing fees. Buyers in Ohio had the lowest closing costs, paying only $1,613.
  • Nationwide, the average origination fee declined 22 percent to $1,041, and the average third-party fee rose 22 percent to $807.

Buyers who take the time to shop around for their mortgages and some of their settlement services are saving hundreds of dollars on some of their closing costs, according to a recent Bankrate survey.

Those who got more involved in their homebuying experience saw their closing costs drop as much as 7 percent, Bankrate said.

To arrive at these conclusions, Bankrate 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. On a $200,000 loan, the national average for closing costs is $1,847.

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.

At the high end, buyers in Hawaii paid $2,163 in closing fees. Also on the high end of the spectrum are New Jersey, where buyers paid $2,094; Connecticut, where buyers paid $2,033; West Virginia, where buyers paid $1,971; and Arizona, where buyers paid $1,969.

Buyers in Ohio had the lowest closing costs, paying only $1,613. Other states ranking low in total fee costs were Idaho, where buyers paid $1,682; Wyoming, where buyers paid $1,689; Utah, where buyers paid $1,697; and Maine, where buyers paid $1,727.

Nationwide, the average origination fee declined 22 percent to $1,041, and the average third-party fee rose 22 percent to $807.

“Homebuyers have more say over closing costs than they think,” said Holden Lewis, Bankrate’s senior mortgage analyst. “Costs vary between lenders, so everyone should compare at least three different options. You don’t have to go with the lender your agent suggests.”

The Real Estate Settlement Procedures Act (RESPA), enacted by Congress in 1974, provides that consumers may shop for and select required settlement services for their real estate transactions — not just on price, but also on service and experience.

Email Amy Swinderman.

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