Buying a home is one of the biggest investments you may ever make, but the price doesn’t offer the complete picture of how much you’ll need to get the keys. You’ll also have to account for closing costs, which are the fees associated with getting a mortgage, like home appraisal and credit check fees. One other big factor that impacts your closing cost tab: where you’re buying.

Key takeaways

  • Closing costs can range anywhere from 2 percent to 5 percent of the home's purchase price.
  • Closing costs averaged $6,905 as of 2021, according to ClosingCorp. This includes costs paid by both the buyer and seller.
  • Washington, D.C. buyers and sellers pay the highest average closing costs, at $29,888. Missouri buyers and sellers pay the lowest, at $2,061.

Average closing costs on a house

Closing costs are the upfront fees you pay when obtaining a mortgage and finalizing a home sale. In 2021, the national average closing costs for purchasing a single-family home were $6,905 including transfer taxes and $3,860 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 fees and costs typically range between 2 to 5 percent of the amount you’re borrowing for your mortgage.

You’ll also pay closing costs when you refinance your mortgage. Those costs, however, tend to be much lower: an average of $2,375 in 2021, according to ClosingCorp.

Average closing costs on a home by state

Here are the average closing costs by state as of 2021 (in order of highest closing costs for a purchase), according to ClosingCorp:

State Closing costs for home purchase (including taxes) Closing costs for refinancing (including taxes)
Source: ClosingCorp
Washington, D.C. $29,888 $3,370
Delaware $17,859 $7,223
New York $16,849 $10,084
Maryland $14,721 $4,096
Washington $13,927 $3,824
Pennsylvania $10,634 $7,614
Connecticut $8,821 $2,678
Florida $8,554 $5,821
New Hampshire $8,183 $2,283
Massachusetts $7,964 $2,486
California $7,953 $5,762
New Jersey $7,915 $4,963
Vermont $7,906 $2,356
Hawaii $7,463 $4,730
Nevada $6,383 $3,586
Virginia $6,346 $3,230
Illinois $5,929 $2,066
Michigan $5,714 $3,011
Rhode Island $5,568 $2,037
Utah $4,837 $2,380
Arizona $4,701 $1,798
Texas $4,548 $3,588
Maine $4,420 $2,944
Oregon $4,327 $3,271
Ohio $4,223 $2,091
Idaho $4,082 $3,253
Minnesota $4,011 $2,369
Tennessee $3,911 $2,436
Colorado $3,881 $2,266
Georgia $3,762 $2,727
Louisiana $3,711 $2,523
Alaska $3,581 $2,671
New Mexico $3,513 $2,693
Wisconsin $3,459 $2,067
South Carolina $3,447 $3,009
North Carolina $3,406 $2,660
West Virginia $3,406 $3,370
Montana $3,337 $2,657
Iowa $3,146 $2,043
Arkansas $3,115 $2,223
South Dakota $3,105 $2,388
Alabama $2,986 $1,914
Oklahoma $2,893 $2,918
Kentucky $2,802 $1,907
Kansas $2,793 $2,150
Nebraska $2,781 $2,038
Mississippi $2,756 $1,810
Wyoming $2,589 $2,069
North Dakota $2,501 $2,067
Indiana $2,200 $1,447
Missouri $2,061 $1,405

States with no transfer taxes

One of the expenses that adds to closing costs: real estate transfer or conveyance taxes, which cover the cost of transferring a title or deed from the seller to the buyer. These states have no transfer taxes:

  • Alaska
  • Arizona (charges $2 fee instead)
  • Idaho
  • Indiana
  • Louisiana
  • Kansas
  • Mississippi
  • Missouri
  • Montana
  • New Mexico
  • North Dakota
  • Oregon (unless you’re buying in Washington County)
  • Texas
  • Utah
  • Wyoming

Markets with the highest average closing costs

(*With taxes) Source: ClosingCorp
1. Vineyard Haven, Massachusetts $28,724
2. Bremerton-Silverdale-Port Orchard, Washington $16,003
3. Salisbury, Maryland-Delaware $15,723
4. Dover, Delaware $13,799
5. New York-Newark-Jersey City, New York, New Jersey, Pennsylvania $13,596

 

(*Without taxes) Source: ClosingCorp
1. Santa Maria-Santa Barbara, California $7,063
2. Kahului-Wailuku-Lahaina, Hawaii $7,016
3. San Jose-Sunnyvale-Santa Clara, California $6,412
4. Santa Cruz-Watsonville, California $6,363
5. Stockton, California $6,137

FAQ about closing costs

  • Closing costs are the fees and charges associated with closing on a mortgage and completing a real estate sale. The costs cover professional fees for services like the home appraisal and attorney’s fees, as well as filing fees for necessary paperwork with the municipality and your lender.
  • Though many closing costs are fixed, you could save by comparing costs of the non-fixed fees listed on your closing disclosure. There might also be wiggle room for negotiation with your lender. If possible, you could strategically plan your closing date, as well, to lower the upfront per diem interest costs on the mortgage.