Is There An Average Amount For Closing Costs?

“HOW MUCH ARE CLOSING COSTS USUALLY? IS THERE AN AVERAGE FIGURE I SHOULD BE LOOKING FOR?”

There really is no set average for closing costs. Although most closing costs are similar in terms of the types of charges (origination fees, title search, appraisal costs, etc.), that’s where the similarity ends. The amount of closing costs you’ll pay depends on several different factors including the type of loan you’re getting, whether it’s a new home purchase or a refinance, the amount you’re financing, and the amount of your down payment. Also, because every state has different regulations, the amount you’ll have to pay will depend on where you live. For example, the average origination, title and closing costs on a $200,000 loan in New York in 2007 totaled $3,830, while the average for Oregon was $2,531. However, just because there isn’t an average doesn’t mean you’ll be in the dark about closing costs. Federal law does require that you be given a HUD-1 form at least one day before you go to settlement. The HUD-1 form (also known as the “settlement statement’) lists all charges imposed on the borrower for the whole real estate transaction, whether it’s a new home purchase or a refinance. Also, your mortgage broker or banker can provide you with a Good Faith Estimate for your particular loan.  ∆

Closing costs survey from BankRate.com