Closing costs typically range between about 2% and 6% of the loan amount or home purchase price. On average, in the U.S. for 2024-2025, homebuyers paid around $4,600, which corresponds roughly to about 1.06% of the home sale price nationally. However, it can vary significantly by state and local taxes — for example, it can be as low as 0.46% of the sale price in some states and as high as close to 3% in others. To give a practical example, on a $200,000 mortgage, closing costs might range from $6,000 to $12,000. On a $400,000 home, closing costs might range from around $8,000 to $20,000 depending on the location and specific fees. These costs include fees for services like lender origination, appraisal, title insurance, escrow, attorney fees, and prepaid expenses like property taxes and homeowner’s insurance. Some of the costs can be negotiated or subsidized by the seller. Summary of key points:
- Average closing costs in 2024 were about $4,661, or roughly 1.06% nationally.
- Typical range is 2% - 6% of the loan or purchase amount.
- Costs vary widely by state due to transfer taxes and fees.
- Closing costs do not include the down payment.
- Buyers usually pay most closing costs but sellers may help via concessions.
This means closing costs are a significant additional expense beyond the down payment when buying a home.
