Study: R.I. third-highest mortgage closing costs in New England

RHODE ISLAND, at $1,896, has the third-highest mortgage closing costs on average compared with other New England states and 14th-highest in the nation, according to a new study by Bankrate.com. / COURTESY BANKRATE.COM
RHODE ISLAND, at $1,896, has the third-highest mortgage closing costs on average compared with other New England states and 14th-highest in the nation, according to a new study by Bankrate.com. / COURTESY BANKRATE.COM

PROVIDENCE – Rhode Island has the third-highest mortgage closing costs on average compared with other New England states and 14th-highest in the nation, according to a new study by Bankrate.com.
The results of the study, released Monday, are based on a Bankrate.com survey conducted in June of up to 10 lenders in all 50 states and Washington D.C. Average mortgage closing costs in Rhode Island totaled $1,896, according to the study, which is greater than the national average of $1,847.
The study calculates closing costs as the sum of each state’s average origination fee plus its average third-party fee, but excludes discount points, taxes, title fees, property insurance, association fees, interest and other prepaid items.
Closing costs nationwide dropped 7 percent, according to the study, which is the product of a 22 percent decline in average origination fees – falling to $1,041 – and a 22 percent increase in average third-party fees, growing to $807.
Hawaii’s closing costs are the highest in the nation, averaging $2,163. Ohio has the cheapest closing cost averaging $1,613.
In New England, Connecticut has the most expensive closing costs, averaging $2,033 followed by Vermont averaging $1,936 and then Rhode Island, according to the study. Maine had the cheapest closing costs compared with all other New England states averaging $1,727, which is also the fifth cheapest in the nation.
Massachusetts has the second cheapest closing costs of all New England states averaging $1,756, followed by New Hampshire averaging $1,835.
Holden Lewis, Bankrate.com senior mortgage analyst, in a statement urged home buyers to shop around for lenders in order to get the best price.
“Home buyers have more say over closing costs than they think,” Lewis said. “Costs vary between lenders, so everyone should compared at least three different options. You don’t have to go with the lender your agent suggests.”

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