Estimate your total closing costs before you get to the settlement table. Typically 2?5% of the home price.
0% of home price
Closing costs typically run 2-5% of your home's purchase price and are due on settlement day — the day you officially take ownership of the property. On a $400,000 home with a 20% down payment, you will need roughly $8,000 to $20,000 in closing costs in addition to your $80,000 down payment. Knowing exactly what each fee covers helps you spot errors, negotiate with lenders, and avoid surprises at the closing table.
Closing costs vary dramatically across the United States. Transfer taxes, attorney requirements, and local recording fees create significant differences from state to state. The table below shows estimated average closing costs on a $400,000 home purchase. Use these figures as a baseline — your actual costs will depend on your lender, loan type, and specific county.
| State | Avg. Closing Costs | % of Home Price | Key Notes |
|---|---|---|---|
| Alabama | $8,200 | 2.1% | Low transfer tax; attorney optional |
| Alaska | $9,100 | 2.3% | No state transfer tax |
| Arizona | $8,800 | 2.2% | Escrow state; low fees overall |
| Arkansas | $8,400 | 2.1% | Transfer tax $3.30 per $1,000 |
| California | $10,400 | 2.6% | County transfer taxes vary widely |
| Colorado | $8,600 | 2.2% | No state transfer tax; title company state |
| Connecticut | $13,200 | 3.3% | High conveyance tax (0.75-1.25%); attorney required |
| Delaware | $15,600 | 3.9% | 4% transfer tax (split buyer/seller); attorney required |
| Florida | $11,200 | 2.8% | Doc stamp tax $0.70 per $100; intangible tax on mortgage |
| Georgia | $9,600 | 2.4% | Attorney required; intangible tax on mortgage |
| Hawaii | $12,800 | 3.2% | Conveyance tax 0.1-1%; high title fees |
| Idaho | $8,100 | 2.0% | No transfer tax; title company state |
| Illinois | $11,600 | 2.9% | Transfer tax varies by county; Chicago adds city tax |
| Indiana | $8,500 | 2.1% | Low overall fees; no attorney requirement |
| Iowa | $8,900 | 2.2% | Transfer tax $0.80 per $500; attorney common |
| Kansas | $8,300 | 2.1% | No state transfer tax; low recording fees |
| Kentucky | $8,700 | 2.2% | Transfer tax $0.50 per $500 |
| Louisiana | $9,200 | 2.3% | Notary acts as closing agent; unique civil law system |
| Maine | $10,200 | 2.6% | Transfer tax $2.20 per $500; attorney required |
| Maryland | $12,400 | 3.1% | Transfer + recordation taxes; attorney required |
| Massachusetts | $11,800 | 3.0% | Excise tax $2.28 per $500; attorney required |
| Michigan | $10,000 | 2.5% | Transfer tax $3.75 per $500 (state) + county |
| Minnesota | $9,400 | 2.4% | Deed tax $1.65 per $500; mortgage registry tax |
| Mississippi | $8,000 | 2.0% | Among the lowest costs nationwide |
| Missouri | $8,100 | 2.0% | Low overall fees; no attorney requirement |
| Montana | $8,500 | 2.1% | No transfer tax; title company state |
| Nebraska | $8,700 | 2.2% | Documentary stamp tax $2.25 per $1,000 |
| Nevada | $9,800 | 2.5% | Transfer tax $1.95 per $500; escrow state |
| New Hampshire | $10,600 | 2.7% | Transfer tax 0.75% (split buyer/seller); attorney common |
| New Jersey | $12,800 | 3.2% | Realty transfer fee; attorney required; high title fees |
| New Mexico | $8,400 | 2.1% | No transfer tax; title company state |
| New York | $16,800 | 4.2% | Highest in US: mortgage tax + transfer tax + attorney fees |
| North Carolina | $9,200 | 2.3% | Excise tax $1 per $500; attorney required |
| North Dakota | $8,200 | 2.1% | Low fees overall; no attorney requirement |
| Ohio | $9,800 | 2.5% | Conveyance fee varies by county (up to $4 per $1,000) |
| Oklahoma | $8,400 | 2.1% | Low transfer tax; title company state |
| Oregon | $9,600 | 2.4% | Transfer tax $1 per $1,000; escrow state |
| Pennsylvania | $12,000 | 3.0% | Transfer tax 2% (split); attorney required in some counties |
| Rhode Island | $10,400 | 2.6% | Transfer tax $2.30 per $500; attorney required |
| South Carolina | $9,000 | 2.3% | Attorney required; deed recording fee |
| South Dakota | $8,200 | 2.1% | Transfer tax $0.50 per $500; low overall costs |
| Tennessee | $8,600 | 2.2% | Transfer tax $0.37 per $100; title company state |
| Texas | $9,400 | 2.4% | No state income tax but high property taxes offset savings |
| Utah | $8,500 | 2.1% | No transfer tax; title company state |
| Vermont | $10,800 | 2.7% | Property transfer tax 0.5-1.25%; attorney required |
| Virginia | $9,800 | 2.5% | Grantor tax + recordation tax; attorney common |
| Washington | $11,000 | 2.8% | Excise tax 1.1-3% (varies by price); escrow state |
| West Virginia | $8,600 | 2.2% | Excise tax + low recording fees; attorney required |
| Wisconsin | $9,200 | 2.3% | Transfer fee $3 per $1,000; no attorney requirement |
| Wyoming | $8,000 | 2.0% | No transfer tax; among the lowest closing costs |
Estimates based on a $400,000 home purchase price with a conventional mortgage. Your actual costs will depend on lender, loan type, and specific county. Transfer taxes, attorney fees, and title insurance rates vary within each state.
Most home buyers accept closing costs as a fixed expense, but they are not. With the right approach, you can save $2,000 to $5,000 or more. Here are five battle-tested strategies to reduce your closing costs:
Federal law requires lenders to provide you with a standardized Loan Estimate within 3 business days of your application. Each Loan Estimate breaks down every fee on the same form, making it easy to compare line by line. Once you have three estimates, call each lender and tell them you are comparing offers. Most loan officers have the authority to reduce or waive origination fees, underwriting fees, and application fees to win your business. Even a 0.25% reduction in origination fee on a $320,000 loan saves you $800 at closing.
A lender credit is where your lender pays part or all of your closing costs in exchange for a slightly higher interest rate. For example, accepting a rate of 7.0% instead of 6.75% might generate a $3,000 credit toward your closing costs. This makes sense if you plan to refinance within 5-7 years, because you will reset your rate later. Run the numbers using a refinance breakeven calculator to determine if this trade-off works for your timeline.
In a balanced or buyer-friendly market, sellers are often willing to cover 2-6% of the purchase price in closing costs. This is called a seller concession. Instead of lowering the sale price by $8,000, the seller pays $8,000 toward your closing costs. The practical result is the same, but a concession lets you preserve cash at closing. FHA allows up to 6% seller concessions, conventional loans allow 3-9% depending on your down payment, and VA loans allow up to 4%.
Your lender might recommend a title company, but you have the legal right to choose your own in most states. Title insurance premiums can vary 30-40% between providers for the exact same coverage. Call at least two additional title companies for quotes. In some states, you can also negotiate the simultaneous issue rate — a discount when you purchase both the lender's and owner's policies from the same company at the same time.
Prepaid daily interest is charged from your closing date through the end of the month. If you close on March 28th, you pay 3 days of prepaid interest. If you close on March 5th, you pay 26 days. On a $320,000 loan at 6.8%, each day of prepaid interest costs approximately $59.73. Closing 20 days earlier would cost an additional $1,195 in prepaid interest. By scheduling your closing as close to month-end as possible, you minimize this line item.
Not all closing costs can be reduced. Government recording fees and transfer taxes are fixed by law. But many of the largest fees on your Loan Estimate are either negotiable, shoppable, or both. Here is a comprehensive breakdown:
| Fee | Negotiable? | How to Reduce It |
|---|---|---|
| Loan Origination Fee | ✅ Yes | Compare lender estimates; ask for a reduction or waiver |
| Underwriting Fee | ✅ Yes | Some lenders waive this to win your business |
| Application Fee | ✅ Yes | Many lenders have eliminated this; refuse to pay it |
| Appraisal Fee | ⚠️ Partially | Fee is set by the appraiser, but some lenders offer appraisal waivers for strong borrowers |
| Title Insurance | ✅ Shoppable | Get quotes from 2-3 title companies; ask about simultaneous issue discounts |
| Attorney/Escrow Fee | ✅ Shoppable | Compare rates between closing attorneys or escrow companies |
| Home Inspection | ✅ Shoppable | You choose the inspector; compare prices and reviews |
| Survey Fee | ✅ Shoppable | Get quotes from multiple surveyors |
| Homeowners Insurance | ✅ Shoppable | Compare quotes from 3+ insurers; bundle with auto for discounts |
| Prepaid Interest | ⚠️ Timing | Close near end of month to minimize days of prepaid interest |
| Recording Fees | ❌ No | Set by the county; cannot be changed |
| Transfer Taxes | ❌ No | Set by state/county law; non-negotiable |
| Credit Report Fee | ❌ No | Set by the credit bureaus; typically $30-$50 |
Within 3 business days of your mortgage application, federal law (TILA/RESPA) requires your lender to send you a standardized 3-page Loan Estimate. This document shows all estimated closing costs organized by category. Page 2 lists every fee line by line and identifies which ones can change at closing ("can change") vs. those that cannot ("cannot increase"). Review it carefully, compare it against competing lenders, and ask your loan officer to explain any fee you don't recognize.
Three days before closing, you will receive the Closing Disclosure — the final version of all fees. Federal law requires lenders to give you 3 business days to review it before signing. Compare it line-by-line against your original Loan Estimate. Any increases above the permitted tolerances (0% for lender and government fees, 10% for third-party services you couldn't shop) must be refunded to you by the lender.
On a $300,000 home, you can expect closing costs between $6,000 and $15,000, depending on your state and lender. The national average falls around 2.5-3.5% of the purchase price, or roughly $7,500 to $10,500. States with high transfer taxes like New York and Delaware will push your costs toward the upper end. Use the calculator above to get a personalized estimate.
Yes, in some cases. With a no-closing-cost mortgage, your lender covers the closing costs in exchange for a higher interest rate — typically 0.125% to 0.375% higher. You can also finance closing costs if your home appraises for more than the purchase price (allowing you to borrow more than you need). However, rolling costs into the mortgage means you pay interest on them for 30 years, which significantly increases the total cost.
Both buyer and seller have closing costs, but they pay different fees. The buyer typically pays lender fees, title insurance (lender's policy), appraisal, inspection, prepaid items, and their share of transfer taxes. The seller typically pays the real estate agent commissions (5-6% of sale price), the owner's title insurance policy (in some states), and their share of transfer taxes. In negotiations, either party can agree to cover the other's costs.
Most closing costs are not tax-deductible. However, there are important exceptions: prepaid property taxes and prepaid mortgage interest (including discount points) are deductible in the year you close. Origination fees that are structured as points (1 point = 1% of the loan amount) are also deductible. Other fees like appraisal, title insurance, and recording fees are added to your cost basis in the home, which reduces capital gains taxes when you eventually sell.
The simplest rule of thumb is to estimate 2-5% of the purchase price. For a more precise figure, use the closing costs calculator at the top of this page. Enter your specific home price, down payment, and customize the individual fee inputs. You can also check the state-by-state table above to see average costs in your area. For the most accurate number, apply with 2-3 lenders and compare the official Loan Estimates they provide.