The average mortgage closing costs, by state

Your mortgage's closing costs depend largely on the state where you're buying a home, and if you have to pay property taxes up front.

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective. Terms apply to offers listed on this page. Read our editorial standards.

• The average closing costs in 2021 were $3,860 without transfer taxes, according to ClosingCorp data. 
• When including transfer taxes, that amount increased to $6,905.
• These costs cover underwriting, title search, and loan fees, and are on top of the down payment.

The average closing costs required to buy a home in the US  in 2021 were $6,905 including transfer taxes, and $3,860 excluding transfer taxes, according to data from mortgage technology company ClosingCorp.

Transfer taxes are a tax that some state or local governments charge when ownership of a property is transferred from one person to another. The buyer or the seller may pay this cost, depending on where you live.

Closing costs are a major expense to consider when shopping for a mortgage, or considering buying a house. Your closing costs can add significantly to the amount you need to buy a home, and are an expense that's separate from your down payment. 

It is possible to get a loan without closing costs, but often, the costs roll into the life of the loan. You may find that a loan with lower or no closing costs has a higher interest rate, which could make costs higher than simply paying up front. A lender could also add closing costs to the loan's principal, which increases the total amount you'll pay interest on.  

Average closing costs by state

ClosingCorp averaged data from 4.4 million single-family home purchase transactions in 2021 and calculated the average amount buyers paid in closing costs. 

Where you live will have a significant impact on what you'll owe to close on your house. According to the data, buyers in Washington, DC paid about $29,888 in closing costs with transfer taxes, while the average Missouri buyer spent $2,061 with transfer taxes.

Here are the average closing costs by state, both with and without transfer taxes owed at closing. 

Closing costs vary slightly between states. Transfer taxes are a big factor, especially in states with high transfer taxes. The amount you'll pay at closing will largely depend on your state's real estate transfer tax rate.

What fees are included in closing costs? 

Closing costs are paid to some of the entities that help you complete the homebuying process and close on your home. Here are some of the typical costs you can expect to pay, according to the Federal Reserve.

Application fee

• Typical cost: $75 to $300

Lenders charge this fee to cover the costs of processing a loan application and checking your credit. 

Loan origination fee

• Typical cost: 0% to 1.5% of the loan amount

This fee covers the lender's costs of underwriting and preparing your mortgage. 

Prepaid interest

• Typical cost: Varies based on the number of days between your closing and when your loan starts, as well as the loan amount and your interest rate.

You'll have to pay interest for the time between when your first payment starts and you close on the mortgage.

Title search and insurance

• Typical cost: $700 to $900

Lenders have a title company run a search on the home's title in order to verify that the seller is the property owner and that the title doesn't have any liens on it. Lenders typically require borrowers to purchase a lender's title insurance policy as well, which protects the lender in the event that title issues come up later on. If you want this protection for yourself, you'll also need to purchase an owner's title insurance policy. 

Appraisal fee

• Typical cost: $300 to $700

An appraisal helps to assure the bank that the home is worth at least the amount of the loan.

Settlement or closing fees, recording fees, or lawyer's fees

• Typical cost: $500 to $1,000

These fees are paid to the lawyer who manages the closing for the lender.

Land surveys 

• Typical cost: $150 to $400

Surveys make sure that all buildings are where they're supposed to be, and to record any locations of changes or improvements. This may not be required if a recent survey is available.

Property taxes

• Typical cost: Varies

Property taxes for the home you're buying may also be due at closing. The amount you'll owe will be prorated to cover the taxes you're responsible for that the seller has already paid for the year.

Additional fees paid for specific loan types

• Private mortgage insurance: If you're getting a conventional loan with a down payment that's less than 20% of the home's purchase price, you'll owe private mortgage insurance, or PMI. The first payment is typically due at closing, and is generally between 0.5% to 1.5% of the loan amount.
• Fees for FHA, VA and USDA loans: If you're planning to use a loan backed by the Federal Housing Administration (FHA), Veterans Administration (VA), or US Department of Agriculture (USDA), you may have to to pay a fee at closing.
  • FHA: 1.75% of the loan amount
  • VA: Between 1.4% and 3.6% of the loan amount
  • USDA: 1% of the loan amount
• Homeowners insurance: If your mortgage includes an escrow account, you could be required to pay for the costs of homeowners insurance to your lender at closing.