Average mortgage closing costs by state

1
Chiyacat/Getty Images

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for

Buying a home is a major investment. Besides looking at the sticker price of a property, you have to account for closing costs, which are the upfront costs associated with getting a mortgage and include fees for services like an appraisal and credit check.

Closing costs vary based on the lender you work with and what providers you use for various services, and also from location to location.

Average closing costs by state

Below are the average closing costs by state and city, according to ClosingCorp data.

What are closing costs?

Closing costs are the upfront fees you pay when obtaining a mortgage. In 2020, the average closing costs nationally for a single-family home were $6,087 including taxes, and $3,470 without, according to ClosingCorp.

In general, closing costs cover:

  • Credit check
  • Title search and insurance
  • Appraisal
  • Attorney’s fees
  • Origination fee
  • Application fee
  • Underwriting fee
  • Transfer taxes, if applicable

Together, these typically range between 2 percent to 5 percent of the amount you’re borrowing for your mortgage.

Below are the most and least expensive areas in terms of closing costs, based on ClosingCorp’s report.

Top 5 markets with the highest average closing costs with taxes

  1. Easton, Maryland – $19,460
  2. Salisbury, Maryland-Delaware – $16,015
  3. Seattle-Tacoma-Bellevue, Washington – $15,707
  4. New York-Newark-Jersey City, New York-New Jersey-Pennsylvania – $13,769
  5. Dover, Delaware – $13,511

Top 5 markets with the highest average closing costs without taxes

  1. Santa Maria-Santa Barbara, California – $6,830
  2. San Jose-Sunnyvale-Santa Clara, California – $6,795
  3. Kahului-Wailuku-Lahaina, Hawaii – $6,735
  4. Los Angeles-Long Beach-Anaheim, California – $6,593
  5. San Diego-Chula Vista-Carlsbad, California – $6,414

Top 5 markets with the lowest average closing costs with and without taxes

  1. Kirksville, Missouri – $802
  2. Sikeston, Missouri – $808
  3. Farmington, Missouri – $867
  4. Branson, Missouri – $895
  5. Hannibal, Missouri – $920

Top 5 states with the highest average closing costs with taxes

  1. District of Columbia – $29,329
  2. Delaware – $17,727
  3. New York – $13,261
  4. Maryland – $11,709
  5. Washington – $11,513

Top 5 states with the highest average closing costs without taxes

  1. District of Columbia – $6,250
  2. Hawaii – $5,599
  3. New York – $5,571
  4. California – $5,366
  5. Illinois – $4,893

Top 5 states with the lowest average closing costs with taxes

  1. Missouri – $1,571
  2. Indiana – $2,100
  3. Kentucky – $2,229
  4. Iowa – $2,272
  5. South Dakota – $2,276

Top 5 states with the lowest average closing costs without taxes

  1. Missouri – $1,571
  2. Iowa – $2,020
  3. South Dakota – $2,023
  4. Arkansas – $2,053
  5. Kentucky – $2,069

Top 5 states with the highest average closing costs as a percentage of price

  1. Delaware – 5.90%
  2. Pennsylvania – 4.21%
  3. District of Columbia – 4.13%
  4. Maryland – 3.30%
  5. New York – 3.01%

Top 5 states with the lowest average closing costs as a percentage of price

  1. Missouri – 0.71%
  2. Colorado – 0.79%
  3. Wyoming – 0.81%
  4. Montana – 0.89%
  5. Kansas – 0.96%

Learn more:

Written by
Dhara Singh
Mortgage reporter
Dhara Singh is a mortgage reporter for Bankrate. She is a former data analyst turned financial journalist who previously worked at Yahoo Finance, CNET, Cashay.com and JPMorgan Chase covering the housing and retirement beats.
Edited by
Mortgage editor