Average closing costs for homebuyers run 2% to 5% of the purchase price roughly $4,527 to $4,876 nationally, depending on the data source. Sellers typically pay more overall (6%-10%, driven mostly by agent commissions), while refinance closing costs average $2,207, or about 0.67% of the loan amount, according to 2025 LodeStar data.
Closing cost figures vary widely depending on who’s counting and what’s included. LodeStar Software Solutions, Fannie Mae, and the Urban Institute all publish data using different methodologies, loan scenarios, and fee categories, which is why you’ll see national averages ranging from under $3,000 to nearly $7,000 depending on the source. This page compiles the most current, verifiable figures from these primary sources so you can see how your own closing costs compare, broken down by buyer, seller, loan type, and refinance scenario.
What Is the Average Closing Cost in the US?
The average closing cost for a home purchase in the US is $4,661, including transfer taxes and recording fees, based on LodeStar Software Solutions’ 2024 Purchase Mortgage Closing Cost Data Report roughly 1.06% of the national average home sale price. Without taxes and recording fees, the average drops to about $3,042. LodeStar’s more recent 2025 data shows purchase closing costs fell 2.9% nationally compared to 2024, with the average now closer to 1.04% of sale price.
Costs vary by exactly what gets counted. LodeStar’s figures reflect real, verified fee data pulled from over 20,000 real estate service providers. The Urban Institute’s analysis of Fannie Mae data, by contrast, found that a buyer financing a home in the $400,000-$500,000 range pays between $10,500 and $21,000 at closing but that figure includes prepaid items like homeowners insurance and escrowed property taxes, which LodeStar’s headline number does not. When comparing any closing cost statistic, always check whether prepaids and taxes are included.
What Are the Average Closing Costs for a Buyer?
Average buyer closing costs range from 2% to 5% of the home’s purchase price, according to Fannie Mae and multiple industry sources. On a $400,000 home, that translates to roughly $8,000 to $20,000. This range typically covers lender fees, title insurance, appraisal and inspection costs, and prepaid items like the first year of homeowners insurance.
What’s included in average buyer closing costs:
- Loan origination and underwriting fees (0.5%-1% of loan amount)
- Lender’s title insurance and title search fees
- Appraisal fee ($500-$1,000+)
- Credit report fee (~$35-$80)
- Prepaid property taxes and homeowners insurance
- Recording fees and, where applicable, transfer taxes
Buyers using smaller loan amounts pay a higher percentage in closing costs than buyers with larger mortgages. The Urban Institute found that a buyer financing $97,000 (a $100,000 home with 3% down) pays around $4,500 in closing costs 4.6% of the loan amount. A buyer financing $679,000 pays about $9,500, or just 1.4% of the loan amount. This happens because many fees, like the appraisal and credit report charge, are flat rather than scaling with the loan size.
What Are the Average Closing Costs for a Seller?
Sellers typically pay between 6% and 10% of the home’s sale price in closing costs, according to Zillow, with the bulk of that cost coming from real estate agent commissions rather than fixed fees. Unlike buyer costs, seller closing costs are deducted directly from sale proceeds, so sellers rarely need to bring cash to the closing table.
What’s included in average seller closing costs:
- Real estate agent commissions (negotiable; no longer a fixed industry standard following the August 2024 NAR settlement changes)
- Attorney or settlement/escrow fees
- Transfer taxes, where applicable
- Prorated property taxes, HOA dues, and utilities
- Any buyer concessions negotiated into the contract
Note that agent commission structures changed following the 2024 NAR settlement. Sellers should confirm current commission terms with their listing agent rather than assuming a fixed percentage, since compensation is now individually negotiated rather than standardized.
What Are the Average Refinance Closing Costs?
Average refinance closing costs were $2,207 nationally in 2025, or about 0.67% of the loan amount, according to LodeStar’s 2025 Refinance Mortgage Closing Cost Data Report. That’s down slightly from $2,403 (0.72% of loan amount) in 2024. Refinance closing costs are typically less than half of what buyers pay in purchase transactions, largely because there’s no owner’s title insurance, no real estate commission, and often no home inspection required.
LodeStar also reported that refinance activity rose 7.8% year-over-year into 2025, and that refinance costs run notably higher in states like New York and Florida, where certain taxes are calculated on loan or note amounts rather than the property’s transfer price a structure that affects refinance and purchase transactions alike.
What refinance closing costs typically include:
- Loan origination and application fees
- Lender’s title insurance (a new policy is usually required even if you have an existing one)
- Appraisal fee
- Recording fees
- Prepaid interest
What Are the Average VA Loan Closing Costs?
VA loan closing costs generally run between 1% and 5% of the loan amount, with the VA funding fee representing the largest variable cost. According to the Department of Veterans Affairs (effective rates as of April 7, 2023, verified current as of January 2026), the VA funding fee ranges from 0.5% to 3.3% of the loan amount, depending on down payment size and whether it’s your first time using a VA loan.
| VA Loan Scenario | Funding Fee |
| First use, down payment under 5% | 2.15% |
| First use, down payment 5%-9.9% | 1.50% |
| First use, down payment 10%+ | 1.25% |
| Subsequent use, down payment under 5% | 3.30% |
| Subsequent use, down payment 5%+ | 1.50% |
| Cash-out refinance (first use) | 2.15% |
| Interest Rate Reduction Refinance Loan (IRRRL) | 0.50% |
Source: VA.gov, VA Funding Fee and Loan Closing Costs, last updated January 15, 2026.
Veterans receiving VA disability compensation, Purple Heart recipients on active duty, and surviving spouses receiving Dependency and Indemnity Compensation are exempt from the funding fee entirely. Sellers can contribute toward a VA buyer’s closing costs, but VA rules cap total seller concessions at 4% of the home’s reasonable value, separate from standard closing costs the seller may also cover. Confirm current exemption criteria directly with the VA, since eligibility rules can change.
How Do Average Closing Costs Compare by Loan Type?
Closing costs vary by loan type primarily because of upfront government insurance or guarantee fees layered on top of standard lender and title charges. Conventional loans avoid these extra fees but require private mortgage insurance below 20% down, while FHA, VA, and USDA loans each carry their own upfront premium structure.
| Loan Type | Typical Closing Cost Range | Notable Upfront Fee |
| Conventional | 2%-5% of purchase price | None (PMI applies if down payment is under 20%) |
| FHA | 2%-6% of home price | 1.75% upfront mortgage insurance premium |
| VA | 1%-5% of loan amount | 0.5%-3.3% VA funding fee (varies; many exempt) |
| USDA | 3%-6% of loan amount | 1% upfront guarantee fee |
Seller concession limits also differ by loan type. Conventional loans cap seller contributions at 3%-9% of the loan amount depending on down payment size, FHA caps concessions at 6% of the appraised value or purchase price (whichever is lower), and VA loans limit additional concessions to 4% on top of standard closing costs the seller may cover.
Where Does Your Closing Cost Money Actually Go?
Three fee categories lender’s title insurance, transfer taxes, and the mortgage origination fee account for more than half of the average buyer’s non-prepaid closing costs, according to Urban Institute analysis of Fannie Mae data on loans between $400,000 and $500,000.
| Fee Category | Median Cost | Share of Total (excl. prepaids) |
| Lender’s title insurance | $1,626 | 21% |
| Transfer tax | $1,465 | 19% |
| Mortgage origination fee | $1,224 | 16% |
| Settlement/closing fee | $725 | 10% |
| Tax stamp | $636 | 8% |
| Appraisal fee | $558 | 7% |
| Owner’s title insurance (optional) | $487 | 6% |
| All remaining fees | ~$970 | 13% |
This breakdown excludes prepaid items like escrowed insurance and property taxes, which the Urban Institute found account for roughly half of what a buyer pays at the closing table when included. Since prepayments are essentially advance payments on obligations you’d owe anyway, most closing cost calculators including LodeStar’s headline figures report both an “including taxes” and “excluding taxes” version, so check which version you’re using before comparing your own numbers.
Which States Have the Highest and Lowest Closing Costs?
Closing costs vary more by state than almost any other factor, ranging from under 0.5% of the sale price in South Dakota to nearly 3% in Delaware, largely because of differences in transfer taxes and attorney-closing requirements. Washington, D.C., New York, and Delaware consistently rank as the most expensive markets, while South Dakota, Missouri, and Iowa rank among the least expensive.
| Highest Closing Costs (2025) | Amount | % of Sale Price |
| Washington, D.C. | $17,545 | 2.39% |
| New York | $13,738 | 2.47% |
| Delaware | $12,157 | 2.99% |
| Maryland | $9,218 | 2.03% |
| Lowest Closing Costs (2025) | Amount | % of Sale Price |
| South Dakota | $1,551 | 0.46% |
| Iowa | $1,640 | 0.64% |
| Missouri | $1,740 | 0.60% |
| Indiana | $1,810 | 0.70% |
States without a real estate transfer tax including Texas, Idaho, Montana, and Wyoming tend to land toward the lower end of this range, since transfer taxes are one of the largest variable costs tied directly to home price. According to HousingWire’s coverage of LodeStar’s year-over-year report, 27 states and Washington, D.C. saw purchase closing costs decline in 2025 versus 2024, while 23 states saw increases, with Delaware posting the largest jump (4.5%) due to rising home prices.
Have Closing Costs Gone Up or Down Recently?
Purchase mortgage closing costs fell 2.9% nationally in 2025 compared to 2024, driven largely by declining home prices that reduced transfer tax burdens in many states, according to LodeStar’s Year-Over-Year Mortgage Closing Cost Report. Refinance closing costs also declined slightly, from $2,403 in 2024 to $2,207 in 2025, even as refinance activity increased 7.8% year-over-year.
This national decline masks significant state-level variation. Washington, D.C. saw the steepest drop (21.1%) due to falling average home prices, yet it remains the most expensive market in dollar terms. Meanwhile, LodeStar noted a growing trend of jurisdictions redirecting recording fee revenue toward non-real estate programs, such as affordable housing initiatives, which could push costs back upward in some states going forward.
How Do You Check if Your Closing Costs Are Reasonable?
To check whether your closing costs fall within a normal range, divide your total closing costs by your home’s purchase price and multiply by 100. If the result falls between 2% and 5%, your costs are within the typical range for a purchase transaction; below 2% may mean prepaid items were quoted separately, while above 5% is worth reviewing line by line with your lender.
Example calculation (illustrative only): On a $400,000 home with $14,000 in total closing costs:
$14,000 ÷ $400,000 = 0.035, or 3.5%
This would fall squarely within the typical 2%-5% range. If your quote comes in significantly higher, ask your lender for an itemized breakdown and compare it against your Loan Estimate. Fees like the origination charge, application fee, and discount points are often negotiable or shoppable, while government recording fees and transfer taxes generally are not.
Frequently Asked Questions
What is the average closing cost on a $300,000 home?
Based on the standard 2%-5% range, closing costs on a $300,000 home typically run between $6,000 and $15,000. Your actual cost depends on your state’s transfer taxes, your loan type, and whether prepaid items like insurance and property taxes are included in the estimate.
Is $4,661 the correct national average closing cost figure?
$4,661 reflects LodeStar’s 2024 national average for purchase transactions, including taxes and recording fees. More recent 2025 LodeStar data shows a 2.9% national decline, and other sources like the Urban Institute report higher totals when prepaid items are included, so the “correct” figure depends on the methodology used.
Are refinance closing costs always lower than purchase closing costs?
Yes, refinance closing costs are typically less than half of purchase closing costs. LodeStar reported a 2025 national refinance average of $2,207, compared to $4,661 for purchase transactions, mainly because refinances skip owner’s title insurance and real estate commissions.
Why are closing costs higher in New York and Delaware than in Texas?
Closing costs are higher in states like New York and Delaware primarily due to significant transfer taxes and, in some cases, mandatory attorney involvement. Texas has no state transfer tax, which keeps its average closing costs (0.93% of sale price) well below states like Delaware (2.99%).
Does the VA funding fee apply to every VA loan?
No. Veterans receiving VA disability compensation, Purple Heart recipients on active duty, and surviving spouses receiving Dependency and Indemnity Compensation are exempt from the VA funding fee. All other VA borrowers pay a fee ranging from 0.5% to 3.3% of the loan amount.
Can a seller cover 100% of a buyer’s closing costs?
It depends on the loan program. VA loans have no cap on standard closing cost concessions but limit additional concessions to 4% of the loan amount. Conventional loans cap seller contributions at 3%-9% depending on down payment, and FHA caps concessions at 6% of the appraised value or sale price.
Do cash buyers pay lower closing costs than financed buyers?
Yes, cash buyers avoid all mortgage-related fees, including origination charges, lender’s title insurance, and discount points. Many cash buyers still opt to pay for an appraisal, inspection, and owner’s title insurance, so their closing costs aren’t zero, but they are meaningfully lower than a financed buyer’s.
Why do smaller loan amounts result in higher closing cost percentages?
Many closing cost fees, such as the appraisal, credit report, and origination charge, are flat dollar amounts rather than a percentage of the loan. Urban Institute data shows a $97,000 loan carries closing costs equal to 4.6% of the loan amount, while a $679,000 loan carries costs equal to just 1.4%.
Has the 2024 NAR settlement changed average seller closing costs?
Yes. Following the August 2024 NAR settlement, real estate agent commissions are no longer presented as a fixed industry-standard percentage and are individually negotiated between sellers and their listing agents. This means seller closing cost totals, historically cited at 6%-10% of sale price, can now vary more than in prior years.
Are closing costs the same as cash needed at closing?
No. Closing costs are separate from your down payment, though both are typically paid at the closing table. Total cash to close includes your down payment, closing costs, and any prepaid items, minus any earnest money already deposited or seller/lender credits applied.