State’s mortgage fees among lowest in the nation

Homebuyers in Washington pay an average of $3,418 in closing costs on a $200,000 mortgage, placing it eighth on the list of states with the lowest costs, NWReporter noted.

The national average cost to close on a $200,000 mortgage is $3,754, according to Bankrate’s annual survey, which is based on a comparison of Good Faith Estimates. That estimate includes fees charged by the lender such as origination fees, processing fees and third-party fees such as title insurance.

New York has the dubious distinction of having the highest costs, a position it has held for three consecutive years. Borrowers there pay an average of $5,435 to obtain a mortgage. Missouri boasts the lowest closing costs, an average of $3,006.

A year ago Washington ranked 20th among states with the lowest estimated mortgage closing costs. The improvement is attributed to an 11 percent drop in estimated closing costs, which compares to a 7 percent decline nationally. Greg McBride, senior financial analyst at Bankrate.com, said the decreases are due to stricter regulations on the estimates.