⚡ Quick Answer: How Much Are Closing Costs?
Closing costs typically range from 2-5% of the loan amount. On a $400,000 home, expect to pay $8,000-$20,000 in closing costs. The exact amount varies significantly by state due to differences in taxes, title insurance, and attorney requirements.
$12,847
National Average
$6,905
Lowest (Missouri)
$24,582
Highest (New York)
📊 Closing Costs by State (2026)
Based on a $400,000 home purchase with 20% down ($320,000 loan). Costs include lender fees, title insurance, taxes, and other typical charges.
| State | Avg. Closing Costs | % of Loan | Rank |
|---|---|---|---|
| New York | $24,582 | 7.68% | Highest |
| Delaware | $21,456 | 6.71% | #2 |
| Pennsylvania | $19,847 | 6.20% | #3 |
| Maryland | $18,234 | 5.70% | #4 |
| Connecticut | $17,892 | 5.59% | #5 |
| New Jersey | $17,456 | 5.46% | #6 |
| Florida | $15,234 | 4.76% | #10 |
| California | $14,567 | 4.55% | #12 |
| Texas | $13,892 | 4.34% | #15 |
| Illinois | $12,456 | 3.89% | #22 |
| Georgia | $11,234 | 3.51% | #28 |
| Arizona | $10,567 | 3.30% | #32 |
| Colorado | $9,892 | 3.09% | #38 |
| Indiana | $8,234 | 2.57% | #45 |
| Missouri | $6,905 | 2.16% | Lowest |
💡 Why the Big Difference? States like New York have high transfer taxes (up to 2.075%), require attorneys at closing, and have expensive title insurance. States like Missouri have no transfer tax and lower overall fees.
📋 Complete Closing Costs Breakdown
🏦 Lender Fees (Negotiable)
| Fee | Typical Cost | Notes |
|---|---|---|
| Origination Fee | 0.5-1% of loan | Highly negotiable |
| Underwriting Fee | $400-$900 | Can be waived |
| Processing Fee | $300-$500 | Negotiable |
| Credit Report | $30-$50 | Fixed cost |
| Discount Points | 0-2% of loan | Optional (to lower rate) |
📄 Third-Party Fees (Less Negotiable)
| Fee | Typical Cost | Notes |
|---|---|---|
| Appraisal | $400-$700 | Required by lender |
| Title Search | $200-$400 | Verifies ownership |
| Title Insurance (Lender's) | $500-$1,500 | Required |
| Title Insurance (Owner's) | $500-$2,000 | Optional but recommended |
| Home Inspection | $300-$500 | Optional but recommended |
| Attorney Fees | $500-$1,500 | Required in some states |
🏛️ Government Fees & Taxes (Not Negotiable)
| Fee | Typical Cost | Notes |
|---|---|---|
| Recording Fees | $50-$250 | County fee to record deed |
| Transfer Tax | 0-2% of price | Varies widely by state |
| Property Tax (Prorated) | Varies | Depends on closing date |
💵 Prepaid Items & Escrow
| Item | Typical Cost | Notes |
|---|---|---|
| Homeowner's Insurance | $1,000-$3,000/year | First year prepaid |
| Property Tax Escrow | 2-6 months | Held by lender |
| Insurance Escrow | 2-3 months | Held by lender |
| Prepaid Interest | Varies | From closing to month-end |
💡 10 Ways to Reduce Your Closing Costs
1. Shop Multiple Lenders
Compare Loan Estimates from 3+ lenders. Fees can vary by $2,000-$5,000 for the same loan.
Compare lenders →2. Negotiate Lender Fees
Origination, underwriting, and processing fees are negotiable. Ask for a fee reduction or match.
3. Ask for Seller Concessions
Sellers can pay up to 3-6% of the purchase price toward your closing costs (varies by loan type).
4. Close at End of Month
Closing on the 28th vs the 5th can save $500-$1,500 in prepaid interest.
5. Shop Title Insurance
You can choose your own title company. Rates can vary by 20-30% between providers.
6. Ask About Lender Credits
Accept a slightly higher rate in exchange for the lender covering closing costs.
7. Use First-Time Buyer Programs
Many state programs offer closing cost assistance grants of $2,000-$10,000.
See programs →8. Skip Optional Fees
Courier fees, email doc fees, and some admin fees can often be waived if you ask.
9. Bundle Services
Some title companies offer discounts if you use their affiliated services.
10. Consider No-Closing-Cost Loans
Roll costs into your loan or rate. Good if you plan to refinance or sell within 5 years.
🧮 Quick Closing Cost Estimate
Use this quick formula to estimate your closing costs:
(Adjust 2-5% based on your state)
Example Calculations:
| Home Price | Loan Amount (20% down) | Est. Closing Costs (3.5%) |
|---|---|---|
| $300,000 | $240,000 | $8,400 |
| $400,000 | $320,000 | $11,200 |
| $500,000 | $400,000 | $14,000 |
| $750,000 | $600,000 | $21,000 |
Get Your Exact Closing Costs
Compare Loan Estimates from multiple lenders to see your actual closing costs. No obligation, no impact on credit.
🌟 Texas Closing Costs: Complete Breakdown
Average Texas Closing Costs: $13,892 on a $400K home (4.34% of loan amount)
Texas ranks #15 nationally for closing costs - moderate compared to other states.
Texas-Specific Fees
- • Title Policy (Owner's):$1,500-$2,500
- • Title Search:$300-$500
- • Survey Fee:$400-$600
- • Recording Fees:$50-$100
- • HOA Transfer Fee:$200-$400
Texas Advantages
- ✅ No state transfer tax (saves $2,000-$8,000)
- ✅ Competitive title insurance rates
- ✅ No attorney required for closing
- ✅ Regulated title insurance (standardized rates)
- ⚠️ Survey often required (adds $400-$600)
💡 Texas Money-Saving Tips
- 1. Shop title companies: Rates are regulated but service fees vary
- 2. Negotiate survey: Ask if seller has recent survey you can use
- 3. Close end of month: Reduces prepaid interest significantly
- 4. Ask about lender credits: Many TX lenders offer competitive credits
🌴 Florida Closing Costs: Complete Breakdown
Average Florida Closing Costs: $15,234 on a $400K home (4.76% of loan amount)
Florida ranks #10 nationally - higher than average due to documentary stamps and intangible tax.
Florida-Specific Fees
- • Documentary Stamps (Deed):$2,800
- • Documentary Stamps (Note):$1,120
- • Intangible Tax:$640
- • Title Insurance:$1,800-$2,500
- • Recording Fees:$150-$250
*Based on $400K purchase price
Florida Unique Features
- ⚠️ Documentary stamps: $0.70 per $100 of sale price
- ⚠️ Intangible tax: $2 per $1,000 of mortgage
- ✅ Seller typically pays: Documentary stamps on deed
- ✅ Buyer typically pays: Documentary stamps on note + intangible tax
- ⚠️ No attorney required but common in South Florida
💡 Florida Money-Saving Tips
- 1. Negotiate who pays what: Documentary stamps are negotiable between buyer/seller
- 2. Shop title insurance: Rates vary by company despite regulation
- 3. Consider simultaneous issue: Discount when buying owner's + lender's title insurance together
- 4. Ask about reissue rate: If seller has recent title policy, you may get discount
- 5. Close end of month: Minimize prepaid interest (especially important in FL)
📍 Regional Differences in Florida
South Florida (Miami-Dade, Broward, Palm Beach):
- • Attorney closings more common ($800-$1,500)
- • Higher title insurance rates
- • Condo fees and estoppel letters common
Central/North Florida:
- • Title company closings standard
- • Lower overall costs
- • Fewer condo-specific fees
❓ Frequently Asked Questions
Are closing costs tax deductible?
Some closing costs are tax deductible, including mortgage points, property taxes, and mortgage interest. Other costs like title insurance and appraisal fees are not deductible. Consult a tax professional for your specific situation.
Can I roll closing costs into my mortgage?
Yes, some lenders offer "no-closing-cost" mortgages where fees are rolled into the loan balance or offset by a higher interest rate. This increases your monthly payment but reduces upfront costs.
Who pays closing costs—buyer or seller?
Typically, buyers pay most closing costs (lender fees, title insurance, prepaid items). Sellers usually pay real estate commissions and transfer taxes. However, buyers can negotiate for sellers to contribute to their closing costs.
When do I pay closing costs?
Closing costs are due at closing (the day you sign final documents and receive keys). You'll typically bring a cashier's check or wire the funds to the title company 1-2 days before closing.
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Sarah Mitchell
Senior Mortgage Analyst • 12+ Years Experience
Sarah has helped thousands of homebuyers understand and reduce their closing costs. She's a certified mortgage planning specialist with expertise in first-time buyer programs and closing cost assistance.