For the second year in a row, Houston, Texas, ranks second among major US cities for the average cost of obtaining a mortgage. Houston is topped only by New York City, while Buffalo, NY, comes in third, according to a survey done by Bankrate, Inc.. Based on a hypothetical $200,000 mortgage, Bankrate, Inc. surveys the city with the highest populations in each of the fifty states throughout the nation to come up with the rankings. Bankrate also included some of the smaller cities to get a better idea of the state’s averages. The fees paid at closing time that they surveyed don’t include taxes, insurance or miscellaneous prepaid items – homeowner association fees, for example. The survey also assumes 20 percent down payment and a good credit rating.

In New York City, mortgage closing costs topped the $4,000 mark, with Houston close behind at $3,975. North Carolina was at the bottom of the list, where the average closing costs are $2,650.

Buyers often overlook the closing fees as part of the expense in buying a home, and they can often be quite high. It’s worth the homeowner’s time to really read documents closely and question the fees he or she is writing checks for. Some fees, such as origination and title search, can be negotiated. Also, as the housing market remains soft, certain fees have risen and certain other fees have been added on as lenders seek to cover their losses. Appraisal fees, in particular, have risen sharply as lenders request a more thorough, time-consuming job.

The list of fees is extensive and it behooves the homeowner to look closely at where their money is going.