Bankrate reports NY has highest mortgage closing costs

Bankrate's 2011 Closing Costs Survey found the average closing costs on a mortgage is 8.8 percent higher than a year ago, with New York leading the nation with an average fee of $6,183 for a $200,000 mortgage.

Other markets with above average closing costs include Texas, Utah and Idaho, while Arkansas has the lowest costs averaging $3,378. The survey found that most of the increased costs, originated in fees charged directly by lenders who on average bill $1,614 in origination fees, an increase of 10.3 percent from last year.

"Interest rates get a lot of attention, and rightfully so, but it's also important for consumers to compare lender fees when shopping for a loan," said Greg McBride, CFA senior financial analyst for Bankrate.

These low interest rates are driving high-end homebuyers to secure supersized mortgages, according to The Wall Street Journal. These large loans are at historic lows, and are comparable to conforming loans with the rates just 0.43 percentage point apart. Stuart Gabriel, director of Ziman Center for Real Estate at the University of California, Los Angeles, told the news source that the low rates make larger loans more attractive and accessible for buyers interested in more expensive markets.

Keith Gumbinger, vice president of HSH Associates, told the news source jumbo loans usually require a down payment of 20 to 30 percent, while a smaller loan requires 10 percent. But with the lower rates, it is still important for borrowers to maintain a high credit score, have proof of assets and net worth, two years of tax returns and documentation of income to even start the loan application process.  

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