How Much Are Closing Costs for Buyers in 2026?

Average closing costs for buyers

Closing costs are the fees and charges you pay to finalize a home purchase and the mortgage that goes with it. The CFPB calls them “the upfront costs you will be charged to get your loan.”

The newest large dataset comes from LodeStar Software Solutions, which studied more than 620,000 purchase quotes from 2025. It found the average buyer paid $4,528 in title, settlement, escrow, recording fees and transfer taxes. That was about 1.04% of the sale price. The median was $3,492, or 0.85% of the price.

These figures do not include the lender’s own charges. Origination fees, discount points and prepaid taxes and insurance come on top. That is why Bankrate’s rule of thumb is wider: total closing costs usually run 2% to 5% of the loan amount.

Source: LodeStar Software Solutions, 2025 Purchase Mortgage Closing Cost Data Report, Apr 27, 2026. Homes over $10 million were excluded.

Closing costs dipped in 2025. LodeStar’s average fell 2.9%, from $4,661 in 2024 to $4,528, mostly because lower home prices cut transfer taxes in many places. Costs fell in 28 states and rose in 23. A 2026 figure is not out yet; LodeStar’s 2025 report was released in April 2026.

What closing costs include

Closing costs fall into three groups. Your Loan Estimate and Closing Disclosure list each one.

Lender charges

• Origination fee: generally 0.5% to 1% of the loan, per Bankrate. It may include application and underwriting fees.
• Discount points: optional. One point costs 1% of the loan and usually lowers the rate by about 0.25 percentage point, per Bankrate.
• Appraisal: Bankrate cites an average of about $350 for a single-family home.
• Credit report: usually passed on to the buyer.

Title, settlement and government fees (what LodeStar measures)

• Title search: typically around $200, per Bankrate.
• Lender’s title insurance: usually about 0.5% of the mortgage amount, per Bankrate. An owner’s policy is optional in most places.
• Settlement, escrow or attorney fees: for the company or lawyer who runs the closing.
• Recording fee: often around $125, per Bankrate.
• Transfer taxes: set by the state and sometimes the county or city. They vary the most and are often paid by the seller, though buyers share them in some areas.

Prepaid items

• Per-diem interest from closing day to your first payment period.
• Homeowners insurance and property taxes, often a year of premiums plus an escrow cushion.
• HOA dues, if the home has them.

Real estate agent commissions are also settled at closing, but they are not loan costs. Bankrate says each agent typically earns around 2.5% to 3% of the price, and the rate is negotiable.

Closing costs by state

Where you buy matters more than almost anything else, mostly because of transfer taxes.

Source: LodeStar Software Solutions, 2025 purchase and year-over-year reports. LodeStar published its full state table as images, so only the states named in its text are shown.

D.C. had the highest dollar cost even after a 21.1% drop from the year before. Delaware stayed the most expensive state as a share of price. LodeStar also named Vermont and Pennsylvania among the high-cost states.

For a fuller state list, Bankrate published LodeStar’s prior-year figures, which cover 2024 purchases. In that data, the most expensive states after D.C. ($17,545) were New York ($13,738), Delaware ($12,157), Maryland ($9,218), Vermont ($8,597) and Florida ($8,492). The cheapest were South Dakota ($1,551), Iowa ($1,640), Missouri ($1,740) and Indiana ($1,810). California averaged $5,962 and Texas $3,713.

Who pays which closing costs

Buyers usually pay the lender’s charges, the appraisal, the lender’s title policy and prepaid items. Sellers often pay transfer taxes and their own agent and attorney fees, though local custom varies.

Sellers can also pay part of your costs through a concession. Loan programs cap how much. For a Fannie Mae conventional loan on a home you will live in:

Source: Fannie Mae Selling Guide, B3-4.1-02. Limits are based on the lower of the price or appraised value.

Example: closing costs on a $400,000 home

This is an example only. Say you buy a $400,000 home with 10% down, so your loan is $360,000.

Sources: Bankrate; LodeStar 2025. All math is our calculation.

1. Start with the lender. The origination charge is one of the few large fees you can compare directly between Loan Estimates.
2. Check your state. At Delaware’s 3.06% share, the title and tax portion alone would be about $12,240 on this home. At South Dakota’s 0.39%, it would be about $1,560 (our calculation).
3. Add prepaids. A year of homeowners insurance and a few months of property taxes for escrow can add thousands. They are not fees, but you still need the cash at closing.
4. Decide on points. One point on this loan would cost $3,600 (our calculation). It only pays off if you keep the loan long enough.
5. Ask for help. With 10% down, Fannie Mae would allow a seller concession of up to 6%, or $24,000 on this price (our calculation), though few sellers offer that much.

Closing costs on a refinance

Refinancing has closing costs too, but the title and tax part is usually smaller because there is no sale and often no transfer tax. LodeStar’s 2025 refinance report, based on 202,059 quotes, found:

Source: LodeStar Software Solutions, 2025 Refinance Mortgage Closing Cost Data Report, May 11, 2026.

New York was the most expensive state for refinances at $10,553, or 2.06% of the loan, followed by Florida at 1.36%. California (0.32%), South Dakota (0.35%) and Arizona (0.37%) were the cheapest. Lender fees and points are extra here too.

Reading your Loan Estimate and Closing Disclosure

Two federal forms show your closing costs in the same layout, so you can compare them line by line.

• Loan Estimate. You get it from each lender after you apply. It shows the estimated rate, monthly payment and closing costs. Use it to compare lenders on the same day.
• Closing Disclosure. The CFPB says your lender must give it to you at least three business days before closing. It shows the final terms and costs.

Look at three spots first. The origination charges section shows what the lender itself charges, including points. The “services you can shop for” section lists title and settlement items where you can pick your own provider. The cash to close line shows the total you need to bring, including the down payment, after any seller credits.

If a number on the Closing Disclosure is higher than on the Loan Estimate, ask why before you sign.

How to lower your closing costs

1. Compare Loan Estimates. Get quotes from several lenders on the same day and compare origination charges and points.
2. Ask about fee waivers. Bankrate notes some lenders waive or cut origination fees, especially for existing customers.
3. Shop for title and settlement services. Your Loan Estimate shows which services you are allowed to shop for.
4. Negotiate a seller concession. It works best when homes in your area are sitting on the market.
5. Look into down payment assistance. Bankrate points to state and local programs, many aimed at first-time buyers, that can cover closing costs.
6. Be careful with no-closing-cost loans. They roll fees into the loan or raise the rate, so you pay over time instead.
7. Read the Closing Disclosure early. The CFPB requires it at least three business days before closing. Use that time to question any charge that changed.

How closing costs fit your home budget

Closing costs are cash you need on top of the down payment, so build them into your number before you shop. Our home affordability calculator and mortgage calculator show the monthly side. A home inspection and the move itself are separate costs that hit in the same few weeks. If you are still deciding whether to buy at all, the rent vs buy calculator lets you add closing costs to the comparison.

This page is general information, not financial advice. See how we research every number on our method page, or browse more budgeting guides.