ClosingCorp releases data on average closing costs for purchase mortgages in the first half of 2021

SAN DIEGO – (COMMERCIAL THREAD) –FenceCorp, a leading provider of residential real estate closing costs data and technology for the mortgage and real estate services industries, today released its most recent closing cost data, which showed that in the first half of 2021, the national average closing costs for a single-family property were $ 6,837 taxes included and $ 3,836 excluding taxes. These were increases of 12.3% and 10.5% year over year, respectively; while the closing costs of refinancing increased slightly to $ 2,398, a variation of 4.87% from the reported average of $ 2,287 in 2020.

ClosingCorp’s cost calculations include Lender’s Title Policy, Owner’s Title Policy, Appraisal, Settlement, Registration Fees, Surveys, and Land Transfer. ClosingCorp uses home price data from CoreLogic to estimate the cost of closing an average home at the state, central statistical area (CBSA), and county level. ClosingCorp uses ranges, rather than unique values, to more accurately capture the fees associated with actual transactions.

Dori Daganhardt, Data Director of ClosingCorp, said: “To get a better overall picture of what’s really going on in a market, we analyzed data from over 1.9 million single-family purchase transactions that were carried out through our ClosingCorp Fees platform in the first semester of this year. We report “market specific” rates and charges, not just network averages billed by the most active settlement service providers in each geographic area. ”

Commenting on what this means for consumers, Bob Jennings, Managing Director of ClosingCorp, said: “In the first half of 2021, buyers were faced with significantly higher home prices; in June, for example, the national average price hit a new high of $ 373,664, and in July, the major house price indexes posted their highest ever year-over-year gains. Although the average price of a home has increased by almost $ 45,000, the closing costs, excluding taxes, for this property have only increased by $ 400. In fact, closing costs as a percentage of purchase prices have declined this year, from 1.06% of the transaction in 2020 to 1.03%. So in addition to meeting strong demand, the mortgage industry is doing a good job of keeping costs under control. ”

The 2021 report shows that the states with the highest average closing costs including taxes were: District of Columbia ($ 30,352), Delaware ($ 17,831), New York ($ 17,582), Washington ( $ 13,909) and Maryland ($ 12,056). The states with the lowest closing costs including taxes were: Missouri ($ 2,102), Indiana ($ 2,193), North Dakota ($ 2,321), Kentucky ($ 2,355) and Wyoming ($ 2,509).

The states with the highest average closing costs, excluding taxes, were: District of Columbia ($ 6,523), New York ($ 6,300), Hawaii ($ 5,976), California ($ 5,772) and Washington ($ 4,803). The states with the lowest closing costs, excluding taxes, were: Arkansas ($ 2,071), Missouri ($ 2,102), Indiana ($ 2,193), Nebraska ($ 2,193) and Kentucky ($ 2,193).

The 2021 semi-annual reports on closing purchase and refinancing costs are now available. For more information, please visit: Cloture.com/closingcosttrends.

Methodology

ClosingCorp’s average closing costs are defined as the average transfer fees and duties required to close a conventional purchase transaction in a geographic area. These costs include fees for the following types of services: title policies (both owners and lenders), appraisals, settlement fees, registration fees, surveys and transfer duties.

The actual closing costs for 1.9 million single-family home purchases from January 1 to June 30, 2021 were analyzed. Homes within $ 100,000 of the average home price (source: CoreLogic, one of the world’s leading providers of information, analytics and data-driven solutions) were used to estimate closing costs of an average single-family residential home in the state, core-based (CBSA) and county-level statistic.

The average service type component charges were calculated for each geographic area where at least 10 transactions took place within the specified range during the reporting period. The total cost of the closure was then calculated as the sum of the averages of the types of services. Only survey fees have been included for single family homes in Florida and Texas where surveys are required. The cost of closure was calculated with and without transfer rights.

About ClosingCorp

Based in San Diego, California, ClosingCorp owns and operates the premier source of information on closing costs and service providers in the US residential real estate industry. Through innovative solutions, progressive technologies and strong alliances, the company delivers timely, accurate and transparent results that help optimize closing processes and services for mortgage lenders, securities and settlement companies and professionals. of real estate. Customers rely on ClosingCorp to improve efficiency and mitigate risk. For more information, please visit www.closing.com.