Holden Lewis of Bankrate.com said the website had been tracking settlement costs for about seven years, out of curiosity.
"I've come away from these closing-cost studies with one firm notion: that title insurance is much too expensive in many parts of the country," he said. "Some states have title-insurance premiums promulgated by government."
In Pennsylvania and New Jersey, premiums are set by state insurance departments.
Two questions arise. Are Bankrate.com's findings accurate? And how can the typical buyer reduce costs?
"The information is flawed," said Marshal Granor, principal in Granor Price Homes of Horsham and a practicing lawyer.
Title insurance in Pennsylvania for a $200,000 loan is $1,358.75 basic rate and $1,222.88 reissue rate, if another policy was issued on the property in the previous 10 years, he said.
Horsham mortgage broker Peter Buchsbaum says using a title-company-approved lawyer to conduct the closing - instead of a title company agent - may save $250.
Closing-cost estimates have risen substantially, however, Granor said. Under revised HUD rules, the estimates cannot be increased, so lenders are "guessing very high," he said.
Other experts share Granor's complaints about the survey - some saying the averages listed for appraisals and inspections are low - but agree that closing costs are high.
Narberth Realtor John Duffy says closing costs can affect a buyer's ability to purchase, but many, especially first-timers, are negotiating a "seller's assist" in the sales contract, helping to pay some or all of the costs.
Jerome Scarpello, of Leo Mortgage in Ambler, said that with rates at 4.32 percent, "there is no sense in paying points" (fees to lower the rate).
With 20 percent down, most lenders waive escrow, he said. That cuts closing costs, but passes responsibility for making tax and insurance payments to homeowners.
