Closing Costs by State (2025)
Average closing costs by state 2025 (excluding prepaid items, based on $400K purchase)
| State | Avg Closing Costs (excl. prepaids) | % of $400K Purchase | Main Driver of High/Low Cost |
|---|---|---|---|
| Washington DC | $29,888 | 7.5% | High transfer taxes (2.2%) |
| Delaware | $17,727 | 4.4% | Realty transfer tax (4%) |
| New York | $16,849 | 4.2% | Mortgage recording tax + mansion tax |
| Maryland | $14,721 | 3.7% | State + county transfer taxes |
| Texas | $11,382 | 2.8% | No state income tax, higher title fees |
| California | $9,728 | 2.4% | Documentary transfer tax, high home prices |
| Missouri | $4,375 | 1.1% | Low transfer taxes, competitive market |
| Indiana | $3,982 | 1.0% | Minimal transfer taxes |
📈The Transfer Tax Effect
Transfer taxes are the single largest variable in closing costs by state. States with 0% transfer tax (Texas, Montana, Idaho) have dramatically lower closing costs than states with 2%+ transfer taxes (Delaware at 4%, Washington DC at 2.2%). On a $400,000 purchase, this difference alone: $8,800+ in additional costs.
Closing Costs by Loan Type
Loan-type specific closing costs (2025)
| Loan Type | Unique Cost | Typical Range | Notes |
|---|---|---|---|
| Conventional | PMI (if <20% down) | 0.5–1.5% annually | Optional points to buy down rate |
| FHA | Upfront MIP (1.75% of loan) | $6,650 on $380K loan | Can be financed into loan |
| VA | Funding fee (1.25–3.3%) | $4,750–$12,540 on $380K | Can be financed; exempted for disabled vets |
| USDA | Guarantee fee (1% upfront) | $3,800 on $380K loan | Annual fee 0.35% also applies |
Get Your State-Specific Closing Cost Estimate
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