Where does Massachusetts rank in the annual survey of average closing costs for a $200,000 mortgage, from bankrate.com? With average title and origination fees of $4,025 in 2010, compared to the national average of $3,741, this makes Massachusetts the 11th costliest state.

The Massachusetts average is up 29.9% from 2009’s ranking at number 18 with average closing costs of $2,822. The U.S. average is up 26.8% from 2009’s $2,739. The seemingly large increase year to year, according to bankrate.com, can be attributed to the

…fundamental change (that) happened this year: The government began requiring lenders to provide accurate good faith estimates of closing costs, or GFEs. Before this year, lenders were not penalized for underestimating fees in the good faith estimate. Now they are penalized for lowballing fees. What about overestimating fees? Regulators discourage lenders from overestimating third-party fees, but there are no penalties for doing so.

The study was done assuming a 20% down payment and excellent credit and counts origination fees charged by the lender, as well as fees charged by third parties. The survey excludes property taxes, recording fees, homeowners insurance and prepaid items such as a partial month’s mortgage interest. It doesn’t include any discount points.

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