ClosingCorp: Closing Costs Averaged $5,779 in 2019

Closing costs for a single-family property averaged $5,749 including taxes—$3,339 excluding taxes—according to data released by ClosingCorp.

"In 2019, the U.S. mortgage industry originated more than $2.3 trillion in purchase and refinance loans—a significant year-over-year increase in volume,” said Bob Jennings, chief executive officer of ClosingCorp. “Unlike the cost of many products that spike when demand goes up, the costs associated with mortgage closings remained flat in 2019. This was good news for homebuyers. In fact, the difference in the average closing cost between 2018 and 2019 was only $30, including taxes, and $5, excluding taxes."

ClosingCorp analyzed 1.6 million single family purchase transactions—roughly 33% of all single family existing home purchases last year.

ClosingCorp’s calculations include lender’s title, owner’s title, appraisals, settlement fees, recording fees, land surveys and transfer tax. ClosingCorp uses home price data from CoreLogic to estimate closing costs for an average home at the state, core-based statistical area (CBSA) and county levels. ClosingCorp uses ranges, rather than single values, because it allows them to more accurately capture fees associated with the real transactions.

Jennings attributed much of the cost control to the increased use of technology by both lenders and settlement services providers which enabled the industry to scale up capacity while holding the line on closing costs.

"It will be interesting to see if this trend continues in 2020, as record low interest rates were accelerating refinances just before the industry began to face the national COVID-19 emergency," he noted.

The 2019 report shows the jurisdictions with the highest average closing costs, including taxes, were:

• District of Columbia ($25,800)
• Delaware ($13,273)
• New York ($12,847)
• Washington ($12,406)
• Maryland ($11,876)

The states with the lowest closing costs, including taxes, were:

• Indiana ($1,909)
• Missouri ($2,063)
• South Dakota ($2,159)
• Iowa ($2,194)