Plan for $8,000–$20,000: Budget U.S. Mortgage Closing Costs by State

Mortgage closing costs are the fees you pay to finalize your loan and transfer the title into your name, and they typically run about 2 to 5% of your purchase price. On a $400,000 home, that works out to roughly $8,000 to $20,000 depending on your loan type, location, and lender. Before you sign anything, check the “Cash to Close” figure on your Closing Disclosure, since that single number tells you exactly what to bring to the table.

TL;DR:

• State costs vary sharply: reported totals range from about $1,551 in South Dakota to $17,545 in Washington, D.C., depending on taxes and recording fees.
• Your lender must deliver the Closing Disclosure at least three business days before closing; compare changed charges with your Loan Estimate and request written explanations.
• Conventional seller concessions can reach 3% to 9%, depending on down payment; VA concessions commonly cap at 4%, and eligible borrowers may avoid the funding fee.
• Paying points upfront tends to help if you keep the home for several years; moving or refinancing soon favors conserving cash.

Table of Contents

• What goes into your closing costs
• Who pays closing costs: buyers, sellers, and loan-type rules
• How closing costs vary by state
• Checking your Loan Estimate against your Closing Disclosure
• Ways to lower or manage your closing costs
• Our pre-closing checklist for avoiding last-minute surprises
• Paying upfront versus financing your closing costs
• How we help you estimate and reduce your cash to close
• FAQ
• Sources

What goes into your closing costs

Your Closing Disclosure groups charges into three categories, and knowing what belongs where helps you spot anything unusual.

Loan Costs cover the price of getting the mortgage itself. These include the origination fee, discount points you choose to buy down your rate, the appraisal, the credit report pulls, and underwriting fees. Other Costs cover everything connected to transferring the property: title search and title insurance, recording fees paid to your county, transfer taxes, and attorney or settlement fees where state law requires them.

Then there are prepaids and your initial escrow deposit, which are not technically “costs” but still show up in your cash needed at closing. These include your first year of homeowners insurance, property tax reserves, and per-diem interest for the days between closing and your first mortgage payment. Insurance and tax reserves are recurring expenses you would pay anyway as a homeowner; per-diem interest is a one-time charge tied to your closing date.

One distinction worth understanding: your Loan Estimate separates “Services You Can Shop For” from “Services You Cannot Shop For.” Title insurance and surveys often fall into the shoppable category, while appraisal and credit report fees typically do not. Knowing which is which tells you where you actually have room to negotiate.

• Loan Costs: origination fee, points, appraisal, credit report, underwriting.
• Other Costs: title insurance, recording fees, transfer taxes, attorney fees.
• Prepaids: homeowners insurance, property tax reserves, per-diem interest.
• Shoppable services: title search, title insurance, and sometimes pest inspections.

Who pays closing costs: buyers, sellers, and loan-type rules

Buyers generally cover the bulk of closing costs, including lender fees, appraisal, and title insurance on their own policy. Sellers typically pay the real estate commission and, in many markets, the owner’s title insurance policy and transfer taxes, though all of this is negotiable in your purchase contract.

Seller concessions let a seller pay part of the buyer’s closing costs directly, which can be more useful than a price reduction because it lowers your cash needed at closing rather than just your loan balance. Lender credits work similarly: you accept a slightly higher interest rate in exchange for the lender covering some fees upfront.

• Conventional loans generally allow seller concessions up to 3% to 9% of the price depending on your down payment.
• VA loans limit which fees veterans can be charged, and VA rules allow seller concessions, commonly up to 4%, plus a mandatory funding fee unless you are exempt.
• VA lenders must support every itemized charge with documented invoices and refund any overcharge.
• FHA loans follow HUD guidance on customary and reasonable fees, and prohibit unearned fees or kickbacks.

How closing costs vary by state

Where you buy changes your closing bill more than most buyers expect. Transfer taxes, attorney-involvement requirements, and recording fees are set at the state and county level, so the same $400,000 purchase can cost thousands more in one state than another.

States with mandatory attorney involvement in closings, like several in the Northeast, tend to run higher because attorney fees stack on top of title and recording charges. States with higher transfer tax rates, or large metro recording fees, push averages up as well. A Bankrate analysis of state closing costs found national averages ranging from roughly $3,042 to $4,661 depending on whether taxes and recording fees are included, with state totals spanning from about $1,551 in South Dakota to $17,545 in Washington, D.C.

Use your own state’s figure as a starting point, then adjust for your specific loan amount and lender.

Checking your Loan Estimate against your Closing Disclosure

Federal rules give you a built-in opportunity to catch problems before you ever sign. Under the TILA-RESPA integrated disclosure rule, your lender must send a Loan Estimate within 3 business days of your application and a Closing Disclosure at least 3 business days before your closing date.

Statistic Callout: The Closing Disclosure shows your “Cash to Close,” the final dollar amount you must bring to closing. This number should match what you budgeted for, and any jump from your Loan Estimate deserves an explanation before you proceed.

Work through these steps once your Closing Disclosure arrives:

1. Compare the loan amount, interest rate, and loan term against your Loan Estimate.
2. Check Loan Costs and Other Costs line by line for new or increased charges.
3. Review the “Services You Did Shop For” and “Did Not Shop For” sections for accuracy.
4. Confirm the Cash to Close figure matches your expectations.
5. If something changed significantly, contact your loan officer or settlement agent immediately for a written explanation.

Ways to lower or manage your closing costs

You have more control over closing costs than most buyers realize, even within federal timing rules.

• Request quotes from more than one title or escrow provider where your state allows shopping.
• Ask for itemized invoices and confirm no fee appears twice under different names.
• Negotiate specific seller-paid line items in your contract rather than a vague lump sum.
• Close near the end of the month to reduce the per-diem interest you prepay.
• Weigh a lender credit against paying points based on how long you plan to keep the loan.

Pro Tip: Ask your settlement agent for a preliminary Closing Disclosure draft a week before signing, giving you time to question anything that looks off.

Rolling costs into your loan amount avoids a cash crunch now but adds interest over the life of the mortgage, so it only makes sense when you genuinely need to conserve cash at closing.

Our pre-closing checklist for avoiding last-minute surprises

In the final week, verify wiring instructions by phone using a number you already have on file, never one from a new email. Double-check the spelling of your name and your Social Security number on the Closing Disclosure, confirm your escrow account is set up correctly, and re-read your Cash to Close one more time. Wire fraud targeting closings is a real risk, and a missing seller credit is easiest to catch before you sign, not after.

Paying upfront versus financing your closing costs

Paying points or fees upfront tends to pay off if you plan to stay in the home for several years, since the savings compound over time. If you expect to move or refinance within a few years, conserving cash and accepting slightly higher costs over the loan term is often the more practical choice. Match the decision to your timeline, not the other way around.

— David Mordue

How we help you estimate and reduce your cash to close

We built our process around speed and clarity, because guessing at closing costs until the last week creates unnecessary stress. Our application moves toward funding quickly, and our consultations walk you through a realistic closing-cost estimate early, not after you are already locked into a contract.

• Get a tailored estimate through our Home Purchase or Refinance services before you make an offer.
• Run the numbers yourself with our Rent vs Buy Calculator or Refinance Calculator.
• Talk through VA-specific or FHA-specific fee rules directly with our team.

Start by checking your rates and pre-approval options so you know your numbers before you need them.

This article is general information, not a substitute for advice from a qualified financial advisor. Consult a qualified financial professional about your own circumstances before acting on anything here.

FAQ

How much are closing costs on a $400,000 house?

Expect roughly $8,000 to $20,000 on a $400,000 purchase, based on the commonly cited 2% to 5% range of the purchase price. Your exact total depends on your loan type, state, and which fees your lender or seller covers.

Is 10% closing costs normal?

No, 10% is well above the typical range for most home purchases. Closing costs commonly fall between 2% and 5% of the purchase price, so a 10% figure would usually signal unusually high fees, a cash-heavy transaction type, or a misunderstanding of what is included in the total.

How much are typical closing costs on a $300,000 house?

Using the same 2% to 5% guideline, closing costs on a $300,000 home typically range from about $6,000 to $15,000. Your state’s average and your loan program both push that figure up or down.

How much are closing costs on a $100,000 mortgage?

Smaller loan amounts can sometimes carry a higher percentage because several fees, like the appraisal and recording charges, stay fairly fixed regardless of loan size.

Can I negotiate who pays closing costs?

Yes, buyer and seller responsibilities for closing costs are set in your purchase contract and are negotiable in most transactions. Seller concessions, specific seller-paid line items, and lender credits are all common ways to shift who covers what.

Sources

• Closing disclosure explainer | Consumer Financial Protection Bureau
• VA funding fee and closing costs | U.S. Department of Veterans Affairs
• HUD handbook: closing costs and FHA fee guidance
• Average Closing Costs By State In 2025 | Bankrate

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