Want to avoid high closing costs? Here’s where mortgage fees cost the most

Aly J. Yale
The Mortgage Reports contributor

More in mortgage fees

Mortgage fees vary greatly from lender to lender — and apparently from place to place. According to a new study, average fees range anywhere from just $500 in one state to nearly $7,000 in another. 

Verify your new rate (Apr 10th, 2021)

Mortgage fees by state

According to a new analysis from agent marketplace Clever, mortgage fees vary widely by state. In Hawaii, for example, homebuyers pay a whopping $6,967 in average fees. Over in South Carolina? They pay just $514.

The states with the highest fees are in the Western part of the country, including Hawaii, California ($3,614), Washington ($3,079), Utah ($2,916), Arizona ($2,859), Nevada ($2,800), and Oregon ($2,552).

Homebuyers pay the lowest fees in South Carolina, Pennsylvania ($594), Kansas ($684), Iowa ($764), and Vermont ($829).

Nationally, the average buyer pays around $2,000 in fees or 1% of the loan amount.

Guide to mortgage closing costs: Average costs and how to keep yours low

High fees equals more complaints

States with higher fees also saw more complaints from customers last year. according to the analysis.

As Francesca Ortegren, Clever’s research associate, explains, “Borrowers were more likely to file complaints in states where people were approved for higher loans and had higher mortgage fees. Lenders received complaints from borrowers in D.C. and Virginia over 2.5 times more often than average, both of which had higher-than-average fees — $5300 and $2500, respectively.”

4 ways to keep your mortgage costs low

Most complaints (lodged with the Consumer Financial Protection Bureau) stemmed from problems with the mortgage process, payments, applications, and closing.

Verify your new rate (Apr 10th, 2021)

Get today’s mortgage rates

Want to avoid paying too much in fees? Then shop around and get quotes from several lenders today.

Verify your new rate (Apr 10th, 2021)