How much are closing costs typically?

Closing costs typically range from 2-5% of the home's purchase price for buyers. On a $400,000 home, expect $8,000-$20,000 in closing costs. Costs vary significantly by state and loan type.

Which state has the highest closing costs?

New York has the highest closing costs, averaging 3.5-4% of the home price, due to high transfer taxes and attorney fees. Other expensive states include Connecticut, New Jersey, and Hawaii.

Can closing costs be rolled into a mortgage?

Some closing costs can be financed into your mortgage or covered by the seller. However, this increases your loan amount and long-term interest costs. You'll also need to qualify for the higher loan amount.

Who pays closing costs, buyer or seller?

Both pay closing costs. Buyers pay loan-related fees (origination, appraisal, title insurance). Sellers pay real estate commissions and transfer taxes in most states. Some costs are negotiable between parties.

Closing Costs by State: Complete 2025 Guide

Average Closing Costs by State

Buyer Closing Costs (2025)

State	Avg. % of Price	On $400K Home	Rank
Alabama	2.3%	$9,200	Low
Alaska	2.5%	$10,000	Low
Arizona	2.6%	$10,400	Low
Arkansas	2.4%	$9,600	Low
California	2.2%	$8,800	Low
Colorado	2.5%	$10,000	Low
Connecticut	3.2%	$12,800	High
Delaware	3.1%	$12,400	High
Florida	2.8%	$11,200	Medium
Georgia	2.7%	$10,800	Medium
Hawaii	3.0%	$12,000	High
Idaho	2.5%	$10,000	Low
Illinois	2.8%	$11,200	Medium
Indiana	2.4%	$9,600	Low
Iowa	2.6%	$10,400	Low
Kansas	2.5%	$10,000	Low
Kentucky	2.5%	$10,000	Low
Louisiana	2.7%	$10,800	Medium
Maine	2.8%	$11,200	Medium
Maryland	3.1%	$12,400	High
Massachusetts	2.9%	$11,600	Medium
Michigan	2.8%	$11,200	Medium
Minnesota	2.7%	$10,800	Medium
Mississippi	2.4%	$9,600	Low
Missouri	2.5%	$10,000	Low
Montana	2.6%	$10,400	Low
Nebraska	2.5%	$10,000	Low
Nevada	2.6%	$10,400	Low
New Hampshire	2.8%	$11,200	Medium
New Jersey	3.3%	$13,200	High
New Mexico	2.5%	$10,000	Low
New York	3.8%	$15,200	Highest
North Carolina	2.6%	$10,400	Low
North Dakota	2.5%	$10,000	Low
Ohio	2.7%	$10,800	Medium
Oklahoma	2.5%	$10,000	Low
Oregon	2.6%	$10,400	Low
Pennsylvania	3.0%	$12,000	High
Rhode Island	2.9%	$11,600	Medium
South Carolina	2.6%	$10,400	Low
South Dakota	2.5%	$10,000	Low
Tennessee	2.7%	$10,800	Medium
Texas	2.8%	$11,200	Medium
Utah	2.5%	$10,000	Low
Vermont	2.8%	$11,200	Medium
Virginia	2.7%	$10,800	Medium
Washington	2.5%	$10,000	Low
West Virginia	2.6%	$10,400	Low
Wisconsin	2.7%	$10,800	Medium
Wyoming	2.4%	$9,600	Low
Washington, D.C.	3.2%	$12,800	High

Closing Cost Components

Buyer Closing Costs

Cost Category	Typical Range	Who Sets Fee
Loan Costs
Loan origination fee	0.5-1% of loan	Lender
Discount points	0-3% (optional)	Buyer choice
Appraisal	$400-$800	Appraiser
Credit report	$30-$50	Lender
Underwriting fee	$400-$900	Lender
Title & Escrow
Title search	$200-$400	Title company
Title insurance (lender’s)	0.5-1%	Title company
Title insurance (owner’s)	0.5-1%	Title company
Escrow/closing fee	$300-$700	Title company
Government Fees
Recording fees	$100-$250	County
Transfer tax	0-2%+	State/local
Prepaid Items
Property taxes	2-6 months	Varies
Homeowners insurance	12 months	Insurance
Prepaid interest	Daily rate to month end	Calculated
Other
Survey	$200-$800	Surveyor
Pest inspection	$75-$150	Inspector
Attorney fees	$500-$2,000	Attorney

Seller Closing Costs

Cost	Typical Range	Notes
Real estate commission	5-6%	Usually largest cost
Transfer tax	0-2%+	Varies by state
Title insurance (buyer’s)	0.5-1%	Often seller pays
Attorney fees	$500-$1,500	If applicable
Prorated taxes	Varies	Pay through closing date
HOA transfer fees	$200-$500	If applicable
Mortgage payoff	Balance + any penalties	Your loan

Transfer Taxes by State

State Transfer Tax Rates

State	Rate	Notes
Alabama	$0.50/$500	Low
Alaska	None	No transfer tax
Arizona	$2 flat	Very low
Arkansas	$3.30/$1,000	Low
California	$1.10/$1,000	+ local taxes
Colorado	$0.01/$100	Very low
Connecticut	0.75-1.25%	+ local
Delaware	2-4%	Highest rates
Florida	$0.70/$100	+ documentary stamp
Georgia	$1/$1,000	Low
Hawaii	0.1-1%	Sliding scale
Idaho	None	No transfer tax
Illinois	$0.50/$500	+ local (Chicago 1.5%)
Indiana	None	No transfer tax
Iowa	$0.80/$500	Low
Kansas	None	No transfer tax
Kentucky	$0.50/$500	Low
Louisiana	None	No transfer tax
Maine	$2.20/$500	Medium
Maryland	0.5%	+ recordation tax
Massachusetts	$4.56/$1,000	Medium
Michigan	$3.75/$500	Low
Minnesota	$3.30/$1,000	Low
Mississippi	None	No transfer tax
Missouri	None	No transfer tax
Montana	None	No transfer tax
Nebraska	$2.25/$1,000	Low
Nevada	$1.95/$500	Low
New Hampshire	$15/$1,000	Both buyer and seller
New Jersey	0.4-1%	Sliding scale
New Mexico	None	No transfer tax
New York	$2-$2.50/$500	+ mansion tax over $1M
North Carolina	$1/$500	Low
North Dakota	None	No transfer tax
Ohio	$1/$1,000	+ local possible
Oklahoma	$0.75/$500	Low
Oregon	$1/$1,000	+ local in some areas
Pennsylvania	1-2%	Varies by locality
Rhode Island	$2.30/$500	Medium
South Carolina	$1.85/$500	Low
South Dakota	$0.50/$500	Low
Tennessee	$0.37/$100	Very low
Texas	None	No transfer tax
Utah	None	No transfer tax
Vermont	1.25-1.45%	Higher rate
Virginia	$0.25/$100	Low
Washington	1.1-3%	Sliding scale
West Virginia	$1.10-$1.65/$500	Low
Wisconsin	$0.30/$100	Low
Wyoming	None	No transfer tax
Washington, D.C.	1.1-1.45%	+ recordation

How to Reduce Closing Costs

Negotiation Strategies

Strategy	Potential Savings
Shop multiple lenders	$1,000-$3,000
Ask seller to pay closing	Up to 3-6% of price
Negotiate lender fees	$500-$1,500
Skip discount points	1-3% of loan
Compare title insurance	$500-$1,000
Close end of month	Reduce prepaid interest

Lender Comparison Example ($400K Loan)

Fee	Lender A	Lender B	Lender C
Origination	$4,000	$2,000	$3,000
Underwriting	$900	$500	$750
Processing	$500	$300	Included
Rate	7.0%	7.125%	7.0%
Total fees	$5,400	$2,800	$3,750

Seller Concessions

Loan Type	Max Seller Concessions
Conventional (20%+ down)	9% of price
Conventional (10-20% down)	6% of price
Conventional (<10% down)	3% of price
FHA	6% of price
VA	4% of price
USDA	6% of price

Closing Cost Breakdown Example

$400,000 Home Purchase

Buyer Costs:

Item	Amount
Loan Costs
Origination (1%)	$3,200
Appraisal	$550
Credit report	$35
Underwriting	$600
Title & Escrow
Title search	$300
Lender’s title insurance	$600
Owner’s title insurance	$1,500
Closing fee	$450
Government
Recording	$125
Transfer tax (0.5%)	$2,000
Prepaids
Property taxes (3 months)	$1,500
Homeowners insurance (12 mo)	$1,800
Prepaid interest (15 days)	$900
Total Buyer Closing Costs	$13,560

Seller Costs:

Item	Amount
Real estate commission (5.5%)	$22,000
Transfer tax (0.5% seller portion)	$2,000
Attorney fee	$750
Prorated taxes	$800
Total Seller Closing Costs	$25,550

What You Can’t Negotiate

Fixed Costs

Cost	Why Fixed
Transfer taxes	Set by law
Recording fees	Set by county
Property taxes	Set by assessment
Government fees	Set by regulation

What You CAN Negotiate

Cost	How to Negotiate
Origination fees	Compare lenders, ask for reduction
Title insurance	Shop around, ask for discounts
Attorney fees	Get multiple quotes
Lender credits	Trade rate for credits

Key Takeaways

Expect 2-5% of home price in closing costs — Higher in NY, NJ, CT
Shop lenders aggressively — Fees vary widely
Ask sellers to contribute — Especially in buyer’s markets
Transfer taxes vary by state — Some states have none
Get Loan Estimate early — Compare itemized costs
Closing near month-end saves prepaid interest — Timing matters

Closing costs are a separate expense from your down payment — see down payment calculator guide to understand the full upfront cash requirement before you close. For a comprehensive breakdown of every cost involved in purchasing a home, see costs of buying a home. First-time buyers may qualify for programs that help cover both closing costs and the down payment — the first-time home buyer guide covers FHA, USDA, and state assistance options.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

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