While most homebuyers are focused on rising home prices, closing costs are rising nearly as quickly over the past three years, increasing by more than 20 percent since 2010, according to Bankrate.com

Mortgage closing costs rose 6 percent over 2013 after rising 6 percent in 2012 and 8.8 percent in 2011 The now average $2,539 on a $200,000 loan.

Each year, lenders’ origination fees account for the lion’s share of the increase.  Since 2010, origination fees, which include lender charges for services such as underwriting and processing, have increased 27.1 percent.

Bankrate’s annual survey of closing costs found that most of the rise in closing costs is tied to fees charged directly by lenders. On average, lenders charge about $1,614 in origination fees this year, up 10.3 percent from last year.  By contrast, third party fees for services like title and appraisals edged up 1 percent to $672.

Texas led the nation in average closing costs, at $3,046. Alaska ($2,897), New York ($2,892), Hawaii ($2,808) and Wisconsin ($2,706) round out the top five.

The cheapest closing costs are in Nevada (an average of $2,265). Tennessee ($2,366), Missouri ($2,387), Ohio ($2,392) and Washington, D.C. ($2,402) comprise the rest of the bottom five.

“New mortgage regulations are the biggest reasons why closing costs went up over the past year,” said Holden Lewis, senior mortgage analyst, Bankrate.com. “The good news is that some lenders have not increased fees. To get the best deal, consumers should compare good faith estimates from at least three different lenders.”

 

Origination       Third-party

Rank     State                    fees                     fees                     Total

1            Texas                  $2,280                $766                    $3,046

2            Alaska                 $2,195                $703                    $2,897

3            New York           $2,109                $783                    $2,892

4            Hawaii                $2,009                $799                    $2,808

5            Wisconsin          $2,035                $671                    $2,706

6            Nebraska            $1,975                $679                    $2,654

7            Vermont             $1,979                $670                    $2,649

8            Florida                $1,982                $666                    $2,648

9            New Hampshire              $1,975                $666                    $2,641

10          New Jersey        $1,891                $733                    $2,625

11          Alabama             $1,967                $646                    $2,613

12          North Carolina  $1,887                $714                    $2,602

13          North Dakota    $1,936                $663                    $2,599

14          Kansas                $1,956                $625                    $2,582

15          Louisiana            $1,928                $652                    $2,580

16          Rhode Island     $1,931                $645                    $2,576

17          Massachusetts  $1,871                $693                    $2,564

18          South Dakota    $1,940                $623                    $2,563

19          Mississippi         $1,931                $629                    $2,560

20          Oregon               $1,896                $663                    $2,559

21          Connecticut       $1,885                $670                    $2,555

22          California           $1,881                $661                    $2,542

23          Utah                    $1,889                $648                    $2,537

24          Wyoming           $1,890                $628                    $2,518

25*        West Virginia     $1,805                $711                    $2,516

25*        Delaware           $1,771                $745                    $2,516

25*        New Mexico      $1,761                $755                    $2,516

28          Pennsylvania     $1,907                $603                    $2,511

29          Oklahoma          $1,908                $591                    $2,498

30          Maine                 $1,854                $643                    $2,497

31          South Carolina  $1,786                708                      $2,494

32          Montana            $1,796                $695                    $2,491

33          Illinois                 $1,841                $640                    $2,481

34          Virginia               $1,840                $639                    $2,479

35          Iowa                   $1,773                $675                    $2,448

36*        Idaho                  $1,800                $641                    $2,440

36*        Indiana               $1,796                $644                    $2,440

38          Minnesota         $1,836                $619                    $2,436

39          Colorado            $1,817                $619                    $2,436

40*        Washington       $1,830                $605                    $2,435

40*        Michigan            $1,835                $600                    $2,435

42          Georgia               $1,766                $667                    $2,433

43          Kentucky            $1,790                $640                    $2,430

44          Arizona               $1,810                $615                    $2,425

45          Arkansas            $1,815                $605                    $2,420

46          Maryland           $1,836                $568                    $2,404

47          Dist of Col          $1,791                $612                    $2,402

48          Ohio                    $1,707                $685                    $2,392

49          Missouri             $1,749                $638                    $2,387

50          Tennessee         $1,746                $620                    $2,366

51          Nevada               $1,570                $695                    $2,265

Average              $1,877                $662                    $2,539

 

Bankrate surveyed up to 10 lenders in all 50 states and Washington, D.C. in June 2014. Researchers obtained online good faith estimates 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. The survey excludes taxes, title fees, property insurance, association fees, interest and other prepaid items.