Top 10 States With Highest Closing Costs

In terms of closing costs, these little transactional costs needed to process the signing of your new home, how does your state stack up? Bankrate did a survey to find out.

Not surprisingly, New York tops out the list at at $5,623. Close behind is Texas at $4,708, followed by Utah and California.

The cheapest state to close? Arkansas, at $3,007, because who no one wants to live there.

Where does your state rank? [Bankrate]

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  1. dizzy says:

    Any list where Mississippi isn’t last is a victory to me.

    • sleze69 says:

      1 2 New York $2,015 $3,608 $5,623
      2 1 Texas $1,539 $3,169 $4,708
      3 16 Utah $1,431 $3,174 $4,605
      4 4 California – San Francisco $1,386 $3,181 $4,566
      5 14 California – Los Angeles $1,419 $2,987 $4,406
      6 6 Alaska $1,936 $2,391 $4,327
      7 8 Oklahoma $1,352 $2,902 $4,254
      8 7 Pennsylvania $1,340 $2,897 $4,236
      9 28 New Jersey $1,338 $2,772 $4,110
      10 27 Idaho $1,365 $2,711 $4,077
      11 18 Massachusetts $1,548 $2,477 $4,025
      12 3 Florida $1,237 $2,751 $3,987
      13 9 Ohio $1,446 $2,540 $3,985
      14 42 Rhode Island $1,989 $1,983 $3,972
      15 39 Arizona $1,437 $2,514 $3,950
      16 34 Wyoming $1,460 $2,462 $3,922
      17 38 Minnesota $1,403 $2,517 $3,920
      18 23 Louisiana $1,491 $2,406 $3,897
      19 15 Virginia $1,528 $2,355 $3,883
      20 19 Michigan $1,424 $2,380 $3,804
      21 11 North Dakota $1,515 $2,285 $3,800
      22 41 District of Columbia $1,363 $2,322 $3,685
      23 35 Delaware $1,401 $2,248 $3,649
      24 20 West Virginia $1,421 $2,216 $3,637
      25 51 Kansas $1,453 $2,161 $3,615
      26 45 Nebraska $1,529 $2,079 $3,608
      27 10 Washington $1,452 $2,154 $3,607
      28 31 Georgia $1,402 $2,201 $3,604
      29 26 South Carolina $1,366 $2,155 $3,522
      30 30 Alabama $1,529 $1,983 $3,512
      31 43 Illinois $1,422 $2,083 $3,505
      32 12 Tennessee $1,450 $2,033 $3,483
      33 13 New Mexico $1,401 $2,079 $3,480
      34 52 Nevada $1,248 $2,223 $3,471
      35 50 Indiana $1,452 $2,013 $3,465
      36 21 Hawaii $1,303 $2,139 $3,442
      37 49 Maine $1,456 $1,976 $3,432
      38 40 Maryland $1,481 $1,921 $3,402
      39 24 Connecticut $1,408 $1,983 $3,391
      40 48 Vermont $1,483 $1,889 $3,372
      41 29 Colorado $1,449 $1,917 $3,366
      42 32 South Dakota $1,458 $1,905 $3,363
      43 36 New Hampshire $1,533 $1,825 $3,358
      44 47 Missouri $1,344 $2,012 $3,356
      45 44 Kentucky $1,488 $1,893 $3,341
      46 25 Mississippi $1,480 $1,855 $3,335
      47 5 Oregon $1,450 $1,883 $3,333
      48 22 Wisconsin $1,491 $1,812 $3,303
      49 33 Montana $1,409 $1,890 $3,298
      50 37 Iowa $1,477 $1,784 $3,261
      51 46 North Carolina $1,476 $1,779 $3,255
      52 17 Arkansas $1,466 $1,542 $3,007

  2. Alecto says:

    Who wants to live in Arkansas?

    People who like clean air, cheap cost of living, tons of outdoor activities, and and low closing costs.

    • YouDidWhatNow? says:

      …and who have an aversion to teeth.

    • TheRedSeven says:

      +1 Clever.

      I’ve only been to Arkansas once, and it was pretty. But being a ‘big city Yankee’ myself (hey, I’m from Chicago), I wouldn’t want to live there. Just a bit too hot and a bit too quiet for my taste.

    • farlo666 says:

      i live in arkansas, and recently my city, was ranked lowest cost of living in the US.

    • Dallas_shopper says:

      I wouldn’t live in Arkansas because my family is here and opportunities in Texas are more abundant, but I love visiting it. It’s a beautiful state.

      • Alecto says:

        Right now with the oil and gas boom there are a lot of jobs. My tiny town has seen over 50 new kids enroll in our schools this year because of it.

        • Dallas_shopper says:

          Probably not for someone who does what I do. But I still think Arkansas is awful purdy. I always have a good time there. :-)

    • Clyde Barrow says:

      And I think you can legally date 14 year old girls too even if they’re your cousin. (not that I would).

      • BlisteringSilence says:

        ^^^^^^^^^^^^
        Idiot.

        In Arkansas, the legal age of consent is 16. There is a provision written into law that allows for a 2 year buffer between engaged parties (ie. a 15 year old and an 17 year old).

        And the laws are written the same way as they are for Colorado, Indiana, and Iowa. And I would argue that our laws are more progressive than yours are. We’re not arresting a 17 year old for child rape for getting a BJ from a 15 year old, and still somehow we’re managing to “protect our children.”

    • rockasocky says:

      And people who are white, I would imagine.

    • Graner316 says:

      Someone who wants to work at Walmart.

  3. Taliskan says:

    The NY closing cost listed above is almost exactly what I paid. Then there was the surprise a few months later of “Oh and you owe $1200 in taxes for the upcoming year.”

    • Loias supports harsher punishments against corporations says:

      It’s a chart on closing costs, not a chart on property taxes.

      • NeverLetMeDown says:

        Not property taxes. There’s a tax on real estate transfers which can be pretty sizable, up to 2.5% of the value of the property.

        • Loias supports harsher punishments against corporations says:

          Clearly this is not required for every state, as I never recall paying a real estate transfer tax.

          The chart, then, I assume covers only costs common to all residential real estate transactions.

          • Loias supports harsher punishments against corporations says:

            From the article:

            “Your costs will be higher than shown here because the most highly variable costs are not included: taxes, other government fees and escrow fees.”

            So, for the many comments regarding taxes: read the article.

            • coren says:

              I’m pretty sure the person who started this thread was not decrying the accuracy but actually reaffirming it (and pointing out that yes indeed, it’s not covering everything)

          • NeverLetMeDown says:

            Should have been clearer – in NEW YORK, there’s a property transfer tax.

      • Taliskan says:

        Oh, I know… the closing costs were as stated from the article/above. I was just stating that with even the high closing costs I was additionally met with high taxes. Not combined. I wasn’t intending to start anything regarding taxes here. NY is expensive. :(

    • AnonymousCoward says:

      Prepaid taxes isn’t a closing cost. It’s the property tax on your property.

  4. mergatroy6 says:

    New York State: $5,623 + taxes + escrow + lawyer + title insurance = $15k when all is said and done.

    Then, just to kind of throw it in your face the bank will send you a $100 refund because it turns out they overcharged you on your origination.

  5. Murph1908 says:

    This does not take into account taxes. Maryland has massive taxes on home sales, which would certainly put them in the top 5.

    • Loias supports harsher punishments against corporations says:

      Aren’t taxes paid anually, and therefore not really related to the one-time costs of closing costs?

      The chart is dealing with just one aspect.

    • vastrightwing says:

      Taxes most certainly count as a cost the same way renting a car has taxes and these are real tangible costs that will affect whether or not you can afford to make a purchase. Don’t forget Oprah’s great car give away where many people couldn’t afford that “free” car. Sure, the car was free, but not the taxes. Again, real tangible costs and many people couldn’t afford the gift. Now if only the politicians have some compassion and realize that we can’t afford more taxes and cut them back to a reasonable 3-5% range. This 50% tax burden we all have here is just that: a burden.

    • H3ion says:

      Maryland transfer and recordation taxes are about 2% of the transaction. If you’re buying a property, you pay the tax on the cost of the property. While there’s also a tax on the mortgage, they give credit so you’re not paying twice. (Gee, thanks Governor O’Malley.) So, on a $200,000 home purchase, you’d pay the cost shown in the survey plus roughly $4,000.

  6. winnabago says:

    The survey doesn’t include # of months taxes required in escrow, which is the biggest variable impacting costs to close.

    • Loias supports harsher punishments against corporations says:

      You have to pay those taxes anyway – whether you pay up front or not.

      Also, taxes != closing costs.

      • winnabago says:

        How about a ranking concerning how much you would need up front to purchase a home of a comparable value in 50 states? This article seems to be just a survey of how much a title search and deed recording fees compare. It’s like doing a study about ice cream costs and only reporting on milk prices.

      • vastrightwing says:

        Not true. There are taxes (on top of your property taxes). How about transfer taxes? Many states also charge sales tax on homes. Yes, that’s right, when you buy a house, you have to pay a sales tax. The taxman will come find every transaction you make and tax it to death.

  7. skylar.sutton says:

    Closing costs are the biggest scam in the industry. Why do we have to pay for things the county records office has on file?

    • Anonymously says:

      Mostly you’re paying to “insure” the lender that they really and truly own the property. And yes, it’s a scam, because unlike traditional insurance which protects against the unknown, the chances for a title insurance claim can be virtually eliminated with a good title search (which you also pay for).

      • dangermike says:

        Yeah, they call it insurance but basically you’re paying for the confidence that the title company’s search is true, accurate, and complete. This very ambiguity came up in front of congress about 20 years ago, and was defended as such. But it is insurance because the companies performing the title search will reimburse for the losses incurred if they fail to uncover anything that would damage the transfer. As mentioned previously, this is quite uncommon in the modern digital world.

  8. PupJet says:

    Wow, my areas (Washington state and Oregon) are not bad in closing costs. I’m actually not surprised since it’s full of freaks and starving artists. LOL

  9. Loias supports harsher punishments against corporations says:

    From the article:

    “Your costs will be higher than shown here because the most highly variable costs are not included: taxes, other government fees and escrow fees.”

    So for the comments regarding taxes: read the article.

  10. Bob Lu says:

    What is the story about Oregon drops from 5 to 47?

  11. Dallas_shopper says:

    My closing costs last year on my house in Dallas County were over $6,000. Our closing costs are RIDICULOUS. Our property taxes are also quite high…but we also have no state income tax. Not sure if we’re better or worse off, honestly.

    • tbax929 says:

      Mine were almost that in Arizona, although I bought from a builder during a promotion and they paid the closing costs. We have no local income taxes here, but they tax the shit out of cars and property. My vehicle registration is coming up, and it’s almost $300 for one year.

      • Clyde Barrow says:

        If I ever manage to sell my house, I doubt I will ever buy again. I’ll rent a place for cheap and forgo all taxes than to ever help any “community” by allowing the local government to rape me. If I had not bought my home I would have so much fricking money saved. I won’t give my money to banks, real estate agents, or brokers ever again.

  12. Wang_Chung_Tonight says:

    whoooo doggie! who noone wants to live dar?

  13. Thoria says:

    You were not stupid enough to risk pissing off the portion of your readership who live in Arkansas, grew up there, have family there, or otherwise love the state by making a cheap attempt at a laugh.

    Yep, it seems you were. But I’m sure you’re “taking it seriously”.

    • JustLurking says:

      Don’t sweat it, he couldn’t even write the sentence correctly in his lame attempt at humor.

      I am from the East Coast and live in the NYC area now, but I spent 16 years in St. Louis and visited Arkansas frequently when I lived there. Arkansas is a beautiful place and has a more than reasonable cost of living.

      I can see why people form New York think they live in the center of the universe. That’s understandable. But their snobby attitude about anything west of Philadelphia or south of D.C. as being an uneducated backwater is ridiculous and doubly so when you consider how abysmal the NYC school system is.

      I don’t have any hard numbers, but I would bet that Arkansas public schools graduate a higher percentage of kids than NYC public schools, which only recently passed the 50% mark a few years ago.

  14. JustLurking says:

    My ass is still killing me from closing costs in New York and we closed almost five years ago.

    I would have loved it if they were only $5,623. Our closing costs, including the lawyer and all of that other related nonsense were several multiples of $5,623. I think we paid in the neighborhood of $22,000. It was such a whirlwind of writing checks and signing documents I am not sure I could even recalculate all that we spent (and all that we signed).

    And we don’t live in a mansion in nice neighborhood. Hell, we live in a modest suburban condo in a somewhat sketchy town.

    Closing costs are a racket and extra profit for all involved — banks, real estate attorneys, governments, insurance companies. It’s nearly total BS.

    • Clyde Barrow says:

      Honestly if I were a millionaire, I would pay that off for you. There is no reason to make someone pay closing costs of $22,000 and that just makes me sick to my stomach.

  15. BlisteringSilence says:

    Who would want to live in Arkansas?

    Well, let’s see:

    http://money.cnn.com/magazines/moneymag/bplive/2010/snapshots/PL0560410.html

    According to CNNMoney.com, Rogers, AR is the #10 best place in the country to live (small cities).

    http://www.kiplinger.com/features/archives/2008/05/2008-best-cities-fayetteville.html?kipad_id=47

    Kiplinger rates the Northwest Arkansas metro area around Fayetteville as the 7th fastest growing metro area in the country. Someone is moving here.

    http://www.forbes.com/lists/2007/1/07bestplaces_Best-Places-For-Business-And-Careers_land.html

    Forbes sees the Fayetteville metro area as the 7th best metro area in the US as well.

    So let’s see. Low closing costs, low pollution, low crime, huge open spaces, great parks and forests, rivers to raft and kayak, low taxes, low cost of living….

    Let’s use my house as an example. I live in metro Little Rock. I have a 4 bedroom, 3.5 bath house, 2,400 square feet, built in 2004, with an attached 2 car garage and a detached 2 car garage/workshop, sitting on 2.5 acres of land, and it cost me $180K.

    And it sits on a private airstrip.

    Yeah, you New York snobs can keep your $750K 900 square foot apartments.

    Tags: @citysnob @idiots @Ipaytoomuchtolive

    • MitchV says:
    • hotcocoa says:

      Kind of ignorant to think that NY is only full of over-priced apartments, no? There’s a lovely place called Long Island (and even Upstate) with space, land, and *gasp* houses! Not all of us are snobs or idiots…but I guess you’re just angry and offended.

      • BlisteringSilence says:

        No, but as the AUTHOR is located in NYC, I figured my generalization would be appropriate. I’ve been to upstate, and it’s very nice. Long Island, I’m not as big a fan of. I used to fly out to LIC every other week for work.

  16. AnonymousCoward says:

    I can understand closing costs being high in New York and California, because real estate prices are high in those places, and a big part of the closing cost is based on the value of the property. But Utah? Oklahoma? What’s that about?

  17. MitchV says:

    I *just* refinanced. Banks stick it to customers, even the folks who are trying to pay off their homes as opposed to walking away.

    Example:
    Chase has an automated fax system for payoff amounts – the “Fax Fee Assessment” is $30
    Citibank. I contacted them and they could only tell me the phone number the faxed the information to… they knew nothing else.

    These are entities who have recently been bailed out by the government. They still gouge people who bought a home they could afford and prevented their home from becoming another one of their “toxic assets.”

    Thank you financial industry!! You guys have gone above and beyond while your country is suffering!!

  18. sopmodm14 says:

    i hate NYS

  19. Jimmy37 says:

    The table is misleading.

    While origination fees shouldn’t differ too much, title and closing costs contain big ticket items like escrowed taxes, transfer and recording fees, and title insurance fees. I expected expensive states like New York, California, and Massachusetts to be at the top. Utah and Oklahoma were a big surprise. It would have been more instructive to break down the costs more.

  20. teke367 says:

    That isn’t so bad really, New Jersey is #9 and only $1000 more than Arkansas, which is last. And actually, as a percentage of the whole cost of the home, its probably cheaper in NJ.

  21. Sparkstalker says:

    The funny thing is, we close on a refinance tomorrow. With no closing costs :)

  22. Mr. Pottersquash says:

    why do we even have closing costs? its my house, i paid for it, gimme gimme.

    • Anonymously says:

      Only if you paid for it full in cash, otherwise it’s the bank’s house…and most of the closing costs involve the bank making sure the house is a good investment.