Closing costs are the fees and expenses you pay when finalizing a home purchase, on top of your down payment. They typically run 2-5% of the loan amount for buyers and 6-10% of the sale price for sellers.
Average Closing Costs by Home Price
For the buyer (excluding down payment):
| Home Price | Low Estimate (2%) | Average (3.5%) | High Estimate (5%) |
|---|---|---|---|
| $200,000 | $4,000 | $7,000 | $10,000 |
| $250,000 | $5,000 | $8,750 | $12,500 |
| $300,000 | $6,000 | $10,500 | $15,000 |
| $350,000 | $7,000 | $12,250 | $17,500 |
| $400,000 | $8,000 | $14,000 | $20,000 |
| $450,000 | $9,000 | $15,750 | $22,500 |
| $500,000 | $10,000 | $17,500 | $25,000 |
| $750,000 | $15,000 | $26,250 | $37,500 |
Average Closing Costs by State
| State | Avg. Closing Costs (incl. taxes) | As % of Home Price |
|---|---|---|
| New York | $16,850 | 3.8% |
| Pennsylvania | $14,400 | 4.0% |
| New Jersey | $13,500 | 3.1% |
| Connecticut | $12,800 | 3.5% |
| Washington DC | $12,500 | 2.4% |
| Maryland | $12,300 | 3.1% |
| Massachusetts | $11,200 | 2.2% |
| California | $10,800 | 1.5% |
| Florida | $10,500 | 2.8% |
| Illinois | $10,200 | 3.5% |
| Texas | $9,800 | 2.9% |
| Virginia | $9,500 | 2.2% |
| Washington | $9,200 | 1.6% |
| Colorado | $8,800 | 1.7% |
| Georgia | $8,500 | 2.5% |
| Ohio | $8,200 | 3.5% |
| North Carolina | $7,800 | 2.3% |
| Michigan | $7,500 | 3.1% |
| Arizona | $7,200 | 1.8% |
| Tennessee | $7,000 | 2.2% |
| Minnesota | $6,800 | 2.1% |
| Indiana | $5,500 | 2.3% |
| Missouri | $5,200 | 2.4% |
| Iowa | $4,800 | 2.5% |
States with transfer taxes (NY, PA, NJ) tend to have the highest closing costs.
Buyer’s Closing Costs: Complete Breakdown
Lender Fees
| Fee | Typical Cost | Negotiable? |
|---|---|---|
| Origination fee | 0.5% – 1% of loan ($1,750 – $3,500 on $350K) | Yes |
| Application fee | $0 – $500 | Yes |
| Underwriting fee | $400 – $900 | Yes |
| Credit report fee | $25 – $75 | No |
| Rate lock fee | $0 – $500 | Sometimes |
| Discount points (optional) | 1% of loan per point | Buyer’s choice |
Third-Party Fees
| Fee | Typical Cost | Negotiable? |
|---|---|---|
| Appraisal | $350 – $600 | No (but can shop for appraiser) |
| Home inspection | $300 – $500 | Shop around |
| Title search | $200 – $400 | Part of title package |
| Title insurance (lender’s policy) | $500 – $1,500 | Shop around |
| Title insurance (owner’s policy) | $500 – $2,000 | Shop around |
| Survey | $300 – $600 | Shop for surveyor |
| Pest inspection | $75 – $150 | Shop around |
| Attorney fees (required in some states) | $500 – $1,500 | Shop around |
Government Fees
| Fee | Typical Cost | Negotiable? |
|---|---|---|
| Recording fees | $50 – $250 | No (set by county) |
| Transfer taxes | 0% – 2%+ of sale price | No (set by state/local) |
| Flood certification | $15 – $25 | No |
Prepaid Items
| Item | Typical Cost | Negotiable? |
|---|---|---|
| Homeowner’s insurance (1 year) | $1,200 – $3,000 | Shop for insurance |
| Property tax escrow (2-6 months) | $1,000 – $4,000 | No (depends on taxes) |
| Prepaid interest (to end of month) | $300 – $1,500 | No (depends on closing date) |
| Mortgage insurance (if <20% down) | $100 – $400/month | No (but can avoid with 20% down) |
Seller’s Closing Costs
| Fee | Typical Cost | % of Sale Price |
|---|---|---|
| Real estate agent commissions | $17,500 – $21,000 | 5% – 6% |
| Transfer taxes (seller’s share) | $0 – $7,000 | Varies by state |
| Title insurance (in some states) | $500 – $2,000 | — |
| Attorney fees | $500 – $1,500 | — |
| Outstanding liens/HOA fees | Varies | — |
| Repair credits/concessions | $0 – $10,000+ | Negotiated |
| Total seller costs | $20,000 – $35,000 | 6% – 10% |
Total Costs: Buyer vs Seller ($350,000 Home)
| Cost Category | Buyer | Seller |
|---|---|---|
| Down payment (20%) | $70,000 | — |
| Closing costs | $8,000 – $15,000 | $21,000 – $35,000 |
| Total cash needed | $78,000 – $85,000 | — |
| Net from sale | — | $315,000 – $329,000 |
How to Reduce Closing Costs
For Buyers
| Strategy | Potential Savings |
|---|---|
| Compare Loan Estimates from 3+ lenders | $1,000 – $3,000 |
| Negotiate seller concessions (ask seller to pay portion) | Up to 3-6% of price |
| Shop for title insurance | $300 – $1,000 |
| Ask about lender credits (higher rate, lower closing costs) | $1,000 – $5,000 |
| Close at end of month (less prepaid interest) | $200 – $800 |
| Skip owner’s title insurance (risky but possible) | $500 – $2,000 |
| Look for first-time buyer programs | Varies |
| Negotiate the origination fee | $500 – $2,000 |
For Sellers
| Strategy | Potential Savings |
|---|---|
| Negotiate agent commission (especially in 2026 market) | $3,500 – $7,000 |
| Use a discount/flat-fee brokerage | $5,000 – $15,000 |
| Sell FSBO (for sale by owner) | Full commission savings |
| Negotiate repair credits instead of actual repairs | Save on costly repairs |
Closing Costs With Different Down Payments
For a $350,000 home purchase:
| Down Payment | Loan Amount | Est. Closing Costs | PMI (monthly) | Total Cash Needed |
|---|---|---|---|---|
| 3% ($10,500) | $339,500 | $11,900 | $180 | $22,400 |
| 5% ($17,500) | $332,500 | $11,600 | $165 | $29,100 |
| 10% ($35,000) | $315,000 | $11,000 | $130 | $46,000 |
| 20% ($70,000) | $280,000 | $9,800 | $0 | $79,800 |
No-Closing-Cost Mortgage: Is It Worth It?
| Feature | Standard Mortgage | No-Closing-Cost |
|---|---|---|
| Upfront costs | $10,000 – $15,000 | $0 |
| Interest rate | 6.5% | 6.75% – 7.0% (higher) |
| Monthly payment ($280K) | $1,770 | $1,815 – $1,863 |
| Extra cost over 30 years | — | $16,200 – $33,480 |
| Best for | Staying long-term | Short-term (under 5 years) |
A no-closing-cost mortgage costs more long-term but can make sense if you plan to refinance or sell within a few years.
Key Takeaways
- Buyer closing costs are typically 2-5% of the loan amount ($7K-$17.5K on a $350K home)
- Seller closing costs are 6-10% — mostly real estate commissions
- States with transfer taxes (NY, PA, NJ) have the highest closing costs
- Compare Loan Estimates from at least 3 lenders to find the best deal
- Seller concessions can cover 2-6% of your closing costs
- Shop for title insurance — it’s one of the largest and most variable fees
- Close at end of month to reduce prepaid interest charges
- No-closing-cost mortgages cost more long-term but help if you’re short on cash
Related Calculators & Guides
- Mortgage Payment Calculator — Estimate monthly payments with your closing costs factored in
- Mortgage Affordability Calculator — See how much home you can truly afford
- Down Payment Calculator — Calculate your minimum down payment requirements
- Average Closing Costs — Compare closing costs by state
- Average Down Payment — See what others typically put down
- Home Buying Checklist — Step-by-step guide to purchasing a home
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