Building Wealth

Home Buying Closing Costs 2025: Complete Breakdown by State

Closing costs average 2–5% of your loan amount — on a $400,000 purchase, that's $8,000–$20,000 due at the closing table, in addition to your down payment. Most first-time buyers don't budget for this correctly. Here's the complete breakdown.

Every closing cost itemized

Fee	Typical Amount	Negotiable?	Who Charges It
Origination fee	0–1% of loan	Yes — shop lenders	Lender
Discount points	1% per point (optional)	Yes — your choice	Lender
Application fee	$0–$500	Sometimes	Lender
Appraisal	$400–$700	No	Appraiser
Credit report	$30–$50	No	Lender
Title search	$200–$400	Partly	Title company
Title insurance (lender)	0.1–0.5% of loan	Shop title companies	Title company
Title insurance (owner)	0.1–0.5% of purchase	Yes — sometimes seller pays	Title company
Attorney fee (required in some states)	$500–$1,500	No	Real estate attorney
Escrow setup fee	$350–$800	Shop escrow companies	Escrow company
Recording fees	$100–$400	No (government)	County recorder
Transfer taxes	0.1–2% of purchase price	No	State / county
Prepaid interest (days to month-end)	$500–$1,500	Close near end of month	Lender
Homeowner's insurance (1 yr prepaid)	$1,200–$3,000	Shop insurers	Insurance company
Property tax escrow (2–6 months)	$1,000–$5,000	No	Lender (held in escrow)

Total closing costs by state

State	Avg. Closing Costs (no taxes)	With Transfer Taxes	Notes
New York	$6,843	$12,847	High transfer taxes + mansion tax
Pennsylvania	$4,000	$6,000–$8,000	1–2% transfer tax split buyer/seller
Delaware	$5,800	$7,000	3% transfer tax
California	$2,900	$3,500	Low transfer tax; title costs vary by county
Texas	$3,700	$3,700	No state income or transfer tax
Florida	$4,100	$4,700	Documentary stamp tax 0.35%
Colorado	$3,200	$3,400	Low transfer tax; attorney not required
Missouri	$2,000	$2,000	No transfer tax; attorney optional

How to reduce closing costs

• Shop 3+ lenders: Origination fees vary by $2,000–$5,000 for the same loan. Get Loan Estimates on the same day and compare line by line (CFPB required format)
• Ask seller to pay closing costs: In a buyer's market, sellers often accept 2–3% seller concessions. Worth asking even in neutral markets
• Use lender credits: Accept a slightly higher rate in exchange for the lender covering closing costs. Makes sense if you plan to sell or refinance in under 5 years
• Close near end of month: Minimizes prepaid interest (you pay interest from close date to end of month)
• Shop title insurance: Title rates vary 25–40% between companies for identical coverage. Get quotes
• Check for first-time homebuyer grants: Many state and local programs offer closing cost assistance ($2,500–$15,000) — search your state's housing finance agency