Closing Costs Average $3,000 Nationwide

Nationwide, closing costs average $3,024, according to a study by Bankrate Inc., an online aggregator of financial rate information.

The study examined the closing costs charged by lenders in major cities in all 50 states and the District of Columbia, including origination fees, title search and appraisal costs. The cities with the highest closing costs were Buffalo, N.Y., $3,887; Houston, $3,578; Honolulu, $3,407; Cleveland, $3,354; and Miami, $3,349,

The cities with the lowest were St. Louis, $2,713; Detroit, $2,714; Concord, N.H., $2,734; Billings, Mont., $2,737; and Cheyenne, Wyo., $2,772.

Bankrate asked home buyers if the closing costs they paid were close to the so-called good faith estimate of closing costs. About 60 percent said the estimate was right on the money. But 13 percent said they paid a higher amount than the estimate, while 8 percent paid less. The remainder didn’t remember.

The survey of closing costs didn't cover government fees and other prepaid items that are essentially passed through by the lender for payment by the borrower.

Source: Bankrate.com (08/10/2006)