New York City Costliest Place to Get a Mortgage

August 7, 2008 No Comments »

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The city of New York was once again the costliest place to get a mortgage, according to Bankrate.com’s annual closing cost study.

Home loan closing costs averaged $4,106 in the Big Apple, well above the nationwide average of $3,118, making it the most expensive area to take out a mortgage for four years running.

Bankrate attributed the high closing costs in the state to taxes levied directly on mortgage lenders (which are passed onto consumers), along with the fact that most signings involve lawyers ($$$).

The state of Texas came in a close second with average loan costs of $3,975, followed by Buffalo, NY with costs of $3,845, Florida with costs of $3,683, and Oklahoma with costs of $3,558.

The cheapest place to get a mortgage was North Carolina, where closing costs averaged just $2,650, followed by Kansas and Missouri, with costs of $2,669 and $2,758, respectively.

In Los Angeles, closing costs averaged $3,250, making it the 13th most expensive place to take out a mortgage.

A year ago, closing costs nationwide averaged $2,736, a 14 percent discount to current levels.

The study’s data was based on a $200,000 loan amount, with a 20 percent down payment and good credit.

The survey includes the loan origination fee and certain third-party fees such as title insurance, but does not include mortgage discount points, prepaid interest, or homeowners insurance.

(photo: foveacentralis)

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