What Are Closing Costs?
The fees that you pay at the closing of a real estate transaction are called closing costs. These typically include a variety of expenses such as loan origination fees, appraisal fees, title searches, and more. Although both buyers and sellers have expenses at the end of a real estate transaction, buyers typically pay a majority of the closing costs.
Typically a borrower will make monthly payments on the principal of the mortgage, interest, and any taxes. Paying off the principal builds equity or the amount of money that the homeowner has gained on the home.
ClosingCorp Report Findings
ClosingCorp, a partner of ours, released a report on June 11, 2019 showing average mortgage closing costs. This report analyzed actual closing fees for 1.5 million single-family home purchases from January 1 through December 31, 2018.
A summary of their findings is that in 2018 national average closing costs for a single-family property were $5,779 including taxes, and $3,344 excluding taxes.
This is an increase from the findings from last year’s report released on July 25, 2018, where national closing costs averaged $5,651 including taxes and $3,438 excluding taxes.
The 2018 report shows the states with the highest average closing costs, including taxes, were: District of Columbia ($24,613), New York ($13,581), Delaware ($13,309), Washington ($12,667) and Maryland ($11,395). The states with the lowest closing costs, including taxes, were: Missouri ($1,887), Indiana ($2,002), South Dakota ($2,149), Iowa ($2,248) and Nebraska ($2,267).
How We Can Help
At Homeowners Financial Group, we pride ourselves in remaining competitive with all aspects of the mortgage process, including closing costs. To find out where we stand, please contact a Licensed Mortgage Professional at a Homeowners Financial Group location near you.
See the full ClosingCorp report here.