Closing costs on mortgage transactions fell 7% over the past year, hitting $3,754 in the latest closing costs survey reported by

Comparatively, the average tally of origination and title fees in a mid-2011 Bankrate survey hit $4,070 for mortgages in the $200,000 range.

Title insurance and other third-party fees also declined 12% from 2011.

"This is the second year in which lenders are required to estimate third-party fees within 10% of the final cost. It seems like they're getting more accurate, which helps explain the sharp decrease in these fees over the past year," said Greg McBride,'s senior financial analyst.

"The main lesson of this survey for consumers is to shop around for at least three different estimates. While no one is going to move to a new state just because closing costs are lower, it's important for people to realize that there is variation even within their neighborhood, and that they can save by being an educated consumer."

New York has the most expensive closings costs with the average tally coming in at $5,435. Texas, Pennsylvania, Florida and Oklahoma also have high closing costs. Meanwhile, Missouri is the least expensive with closing costs hitting $3,006 on average.