The average cost to close on a mortgage in the United States dropped seven percent over the past year to $3,754, according to Bankrate.com's eighth annual closing costs survey, which was released today. Title insurance and other third-party fees fell 12 percent from 2011, while origination fees edged down one percent.

"This is the second year in which lenders are required to estimate third-party fees within 10 percent 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, CFA, Bankrate.com'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."

For the third straight year, New York State has the nation's most expensive closing costs at an average of $5,435. The next most expensive states are Texas, Pennsylvania, Florida and Oklahoma. The least expensive state is Missouri ($3,006 on average), which is joined by Kansas, Colorado, Iowa and Arkansas among the five cheapest states.

Georgia ranked 19th in 2012 with an average of $3,811, climbing 17 spots from 2011.