An average Minnesota buyer home buyer pays $4,206 at the closing table,according to new research from Bankrate.com. That makes closing costs in the state the 17th-highest in the nation. The state ranked 17th last year, as well. Be glad you're not buying a house in New York, which ranked No. 1 at $6,183, but if you want a cheap mortgage, go to Arkansas, which had the lowest closing costs at $3,378
Here's how Bankrate did the survey: They asked up to 10 lenders in each state in June 2011 to provide an online good faith estimate for a $200,000 mortgage to buy a single-family home with a 20 percent down payment. Costs include fees charged by lenders, as well as third-party fees for services such as appraisals and title insurance. The survey excludes taxes, property insurance, association fees, interest and other prepaid items.
Nationwide the average increased almost 9 percent to $4,070, but costs in Minnesota remained largely flat. Bankrate said that most of that increase is tied to higher fees charged by lenders. The group said that on average, lenders charged about $1,614 in origination fees for various services and processing, up 10.3 percent from last year.
Lenders say that costs are on the rise primarily because of increases in regulation, which makes compliance more expensive.
