Mortgage closing costs decline

Arkansas has the fifth-lowest mortgage closing costs in the nation, according to new research that Bankrate.com released Monday (Aug.6).

On average, it costs $3,325 to close on a mortgage in Arkansas in 2012, against the national average of $3,754.

In 2011, Arkansas had the lowest closing costs in the nation at $3,378. Closing costs declined 2% in in the Natural State over the past year, versus a 7% decline nationally. Title insurance and other third-party fees fell 12% from 2011, while origination fees edged down 1%.

"This is the second year in which lenders are required to estimate third-party fees within 10% of the final cost. It seems like they're getting more accurate, which helps explain the sharp decrease in these fees over the past year," said Greg McBride, Bankrate.com's senior financial analyst. "The main lesson of this survey for consumers is to shop around for at least three different estimates. While no one is going to move to a new state just because closing costs are lower, it's important for people to realize that there is variation even within their neighborhood, and that they can save by being an educated consumer."