On average, closing costs rose 37% in 2010, according to Bankrate.com's annual survey of the closing costs for a $200,000 home purchase mortgage.
Home buyers faced increased origination fees from lenders and increased fees from third parties for items such as appraisals and title insurance.
Several changes during the year likely helped push costs up. Regulators, Fannie Mae and Freddie Mac increased the level of oversight required during the processing of individual mortgage loan applications, which boosted labor costs for lenders. In addition, lenders became subject to penalties for underreporting fees in their good faith estimates of closing costs.
Vermonters were no different than other home buyers and faced higher origination and third party fees last year, according to Bankrate.com's state-by-state survey results.