Question 1

Which mortgage lender has the lowest closing costs?

Accepted Answer

It varies by state and loan amount. Nationally, large online lenders like Better and Rocket Mortgage often post lower origination charges, while regional credit unions like NFCU and PenFed lead on total closing costs in many markets. Search by state above to see the lowest-cost grades in yours.

Question 2

How much do closing costs vary between lenders?

Accepted Answer

On a typical $400K mortgage, total closing costs between the cheapest and most expensive lenders in a state can differ by $5,000–$8,000. The biggest swings come from origination charges, underwriting fees, and title-insurance markups — categories where lenders have meaningful pricing discretion.

Question 3

What fees do lenders mark up the most?

Accepted Answer

Origination charges, underwriting fees, processing fees, and document-prep fees show the widest spread between lenders. Third-party fees (appraisal, recording, transfer tax) are largely fixed by the state or vendor — your lender choice doesn't move them much.

Question 4

Is it cheaper to use a big bank or an online lender?

Accepted Answer

Online lenders typically post lower origination charges but mark up processing and underwriting fees. Big banks tend to bundle fees into a higher origination. Credit unions usually have the lowest total closing costs but stricter membership requirements. Compare A–F grades above for your state.

Question 5

How do I compare lender closing costs before applying?

Accepted Answer

Request a Loan Estimate from 2–3 lenders within 14 days (it doesn't compound your credit pull). Compare line-by-line on page 2 of the LE — origination charges, services you cannot shop for, and services you can shop for. Upload to Fair Loan Check to flag any fees running above your state's benchmark.

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Mortgage Lender Closing Cost Comparison

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