Whether you are shopping for a bad credit mortgage or not, it may surprise you that mortgage costs are not the same across the country. HUD estimates that home buyers in non-recourse states (states that don't allow lenders to sue you if your foreclosure property sells for less than the balance of the mortgage) pay about .5% extra ($500 on a $100,000 mortgage) than borrowers in recourse states, because the non-recourse requirement increases the potential for losses.

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Another factor in mortgage pricing is the availability of homestead exemptions. The bigger they are, the less risky the mortgage is for the lender. That's because larger homestead exemptions enable borrowers to declare personal bankruptcy and default on other personal debts without also defaulting on their mortgages. This leaves them with more post-bankruptcy resources to make mortgage payments. HUD says that that charges to borrowers are $500 lower in states where the homestead exemption is more than $40,000.

HUD also found lender / broker fees to be higher in some states than others but could not find a reason for this. The agency reported that borrowers in Alaska paid the least amount, followed by Wyoming, North Dakota, Tennessee, and and Minnesota, while those in Nevada, Utah, Michigan, Florida, and Ohio paid the most -- an average of over $2,000 more.

Title charges comprise some of the largest costs of getting a mortgage, and they range widely (on a $100,000 loan they can vary from $668 to $2,090) depending on where you buy your home. Title charges are lowest in North Dakota, Georgia, Wyoming, Colorado, and North Carolina, and highest in New York, Texas, California, New Jersey, and Connecticut. Understand that you are allowed to shop for the title company with the lowest charges. You are not obligated to use the one recommended by a real estate agent or lender.