PALM BEACH, Fla. – The closing costs on a mortgage in Rhode Island are the 41st-least expensive in the nation, according to a survey by Bankrate.com.
Bankrate surveyed up to 10 lenders in each state in June 2011 and obtained online, “good faith” estimates for a $200,000 mortgage to buy a single-family home with a 20 percent down payment, assuming good credit.
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The company surveyed one city in 49 states, two cities in California and the District of Columbia.
Rhode Island dropped to No. 41 from No. 14. According to the survey, origination costs were $1,555; title and closing costs, $2,150; and the total costs, $3,705.
The average mortgage costs for all areas nationwide were: $1,614 for origination; $2,456 for title and closing; and $4,070 for the total costs.
In Massachusetts, the closing costs were higher than the Ocean State, tying for No. 15 with Nevada, but down from its 2010 rank of No. 11. In the Bay State, origination costs were $1,594; title and closing, $2,650; and total costs, $4,288.
Bankrate.com highlighted the following average fees, if charged by the bank, in Rhode Island:
Origination fees charged by lender:
- Points, $687
- Application, $245
- Commitment fee, $615
- Document preparation, $73
- Broker, originator or lender, $997
- Processing, $495
- Tax service, $72
- Underwriting, $113
- Wire transfer, $25
Third-party fees
- Appraisal, $393
- Attorney, closing or settlement, $536
- Credit report, $11
- Flood certification, $10
- Employment verification, $15
- Inspections (pest, etc.), $125
- Postage/courier, $55
- Survey, $1,000
- Title search and title insurance, $1,720
The headline implies this is a bad-news story, but it’s not. If I am reading the story correctly, Rhode Island has one of the lowest closing costs (not one of the highest, as implied by the headline), so I suspect the story should be titled, “Rhode Island’s closing costs 41st-most expensive” (there are 40 states with higher closing costs); clearer still would be “Rhode Island ranks 10th for least expensive closing costs” (assuming only the 50 states were included in the survey).