A new study from the Urban Institute and the U.S. Dept. of Housing and Urban Development (HUD) says there are significant disparities among borrowers, particularly minorities, and what they pay for closing costs when buying a home, including those with identical credit scores, loan terms, and mortgage amounts.

“The core problem is that too many Americans sign a mountain of documents they don’t understand and pay thousands of dollars for services that they’ve probably never heard of,” said Brian Montgomery, HUD assistant secretary. “This report proves that the more informed you are, the less you pay. Our common goal should be to increase competition and transparency, and to help take the mystery out of buying a home.”

According to the study, loan fees can vary by thousands of dollars from borrower to borrower; charges and title fees vary considerably state-to-state; and some minorities pay up to $400 more in closing costs than non-minority borrowers in some markets.