Houston helped Texas place second in Bankrate.com’s 2006 nationwide survey comparing closing costs, the money consumers pay to cover title searches, application fees and other expenses when buying a home. The study of 51 geographic locations nationwide showed average closing costs were $3,024.

For the second year in a row, New York’s closing costs placed it first as the state with the highest mortgage-related fees; this year’s average is $3,887. Homebuyers in Missouri pay the lowest closing costs, an average $2,713, which is $1,174 less than New York in this year’s survey.

For this year’s annual closing costs survey, Bankrate.com obtained eight to ten good faith estimates in each state from the websites of online lenders. Researchers picked a ZIP code in the biggest city in each state (with one exception) and requested information on the closing costs for a $200,000 loan there. They requested fees on a 30-year, fixed-rate mortgage for a borrower with a 20-percent down payment and good credit to buy a single-family house.

Source: bankrate.com