Closing costs more in NY

From the Daily News:

HERE’S ONE more reason why it’s so ridiculously expensive to live in New York: We have the highest mortgage closing costs in the country.

For the third year in a row, New York State leads the way in fees associated with getting a home loan, according to a new survey from Bankrate.com.

The average closing cost here is a whopping $5,435 for a $200,000 mortgage on a single-family home purchased with a 20% down payment.

Compare that with Missouri, the state with the lowest closing costs, where they pay an average of $3,006. The national average is $3,754.

In doing its analysis, Bankrate looked at fees charged by lenders, as well as third-party fees for services such as appraisals and title insurance. All of those things cost more in New York, Bankrate said.

The news wasn’t all bad. Closing costs fell 12% in New York as banks competed to snare business.

Melissa Cohn, president of Manhattan Mortgage Co., noted that New York homebuyers are also saddled with a mortgage recording tax. In New York City, that amounts to about 2% of the loan amount, she said.

New York State also requires that banks use attorneys when closing on a loan. That raises your closing costs, too.