Closing Costs Rise 6% Over Last Year

Mortgage closing costs are up 6 percent over the past year, according to a report from ""Bankrate.com"":http://www.bankrate.com/.

[IMAGE]

The average closing cost across the United States rose over the year to $2,402. Origination fees increased 8 percent to $1,730--accounting for the bulk of the increase in closing costs--while third-party fees rose 1 percent to $672.

[COLUMN_BREAK]

In terms of highest average closing costs, Hawaii took the top spot with an average of $2,919. It was joined in the top five by Alaska ($2,675), South Carolina ($2,658), California ($2,639), and New Mexico ($2,566).

Meanwhile, Wisconsin ($2,119), Missouri ($2,188), Kansas ($2,193), Michigan ($2,203), and Washington ($2,208) made up the bottom five states.

While senior mortgage analyst Polyana da Costa noted it's ""unlikely that [consumers] will move to Wisconsin solely to pay lower closing costs,"" she noted they may be able to avoid higher costs by shopping around in their area.

To find its results, Bankrate surveyed up to 10 lenders in all 50 states as well as the District of Columbia. Costs involved include fees charged by lenders and third-party fees for services such as appraisals; they exclude taxes, title fees, property insurance, association fees, interest, and other prepaid items.