PALM BEACH GARDENS, Fla. — Rising interest rates aren't the only thing making it more expensive for consumers to purchase a home. Closing costs are also going up nationwide.
According to a survey conducted by Bankrate.com, the average costs to close a mortgage reached $3,024 this year, up from $2,748 in 2005. The 2006 median is $2,978 compared to the $2,669 median in 2005.
To determine the averages, Bankrate asked lenders in each state and Washington, D.C. how much it would cost to obtain a $200,000 mortgage with a 20% down payment. Closing costs include lender, title and settlement fees.
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For the second consecutive year, New York had the highest average closing cost for any state. Homebuyers there pay, on average, $3,887 to close a mortgage. Texas comes in second at an average $3,578–in 2005 Texas ranked 15th.
In third through tenth place, respectively are: Hawaii ($3,407); Ohio ($3,354); Florida ($3,349); Connecticut ($3,284); Alaska ($3,265); New Mexico ($3,239); Kentucky ($3,206); and Alabama ($3,189).
Michigan ($2,714) and Missouri ($2,713) have the lowest closing costs.
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