Mortgage closing costs are on the rise in Tennessee, as well as the rest of the nation, according to a recent survey by Bankrate.com.
Nationally, closing costs have risen 6 percent. Tennessee jumped 11 ranks from 2012, landing at the 20th-highest closing costs this year.
Holden Lewis, a senior mortgage analyst at Bankrate.com, said that the percentage increase was typical for the past few years.
“Over the last year or so, there’s been a high demand for mortgages that allowed lenders to increase prices,” Lewis said.
This year, Tennessee’s average closing cost is $2,437, which includes $1,806 in lenders’ origination fees and $631 in third-party costs.
Hawaii had the highest average in the nation at $2,919. Wisconsin had the lowest ($2,119).
For the survey, Bankrate asked up to 10 lenders in each state and the District of Columbia to estimate closing costs for a $200,000 mortgage with a 20 percent down payment.
The survey excludes title insurance and other prepaid elements of closing on a mortgage.
Local Realtor Brandi Pearl Thompson said that third-party fees consist of things like processing fees, underwriting fees, flood certification and appraisals. Other costs can change with location.
“The taxes and insurance can vary depending on the city and county or where you are in the state,” Thompson said.
When it comes to finding a mortgage lender, Lewis suggested looking at different options.
“It’s important to shop around,” he said. “I always recommend applying at three different places. Keep in mind there’s generally an element of ‘you get what you pay for.'”
Lewis said fees don’t vary much from lender to lender. However, he did recommend that people shop around for title insurance.
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