Buying a home is one of the biggest investments you may ever make, but the price doesn’t provide the truth of how much you’ll want to get the keys. You’ll also need to take into account settlement costs, what are fees related to getting a mortgage, like appraisal and credit assessment fees. There is no one-size-fits-all for settlement costs; they vary by lender and also the others providing services you need to close your mortgage, such as title insurance. One other big component that impacts your closing cost tab: where you’re buying.
Average settlement costs on a home by state
Here are the average settlement costs by state as of 2022 (in order of highest closing costs for a purchase), based on 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 |
What are closing costs?
Closing costs are the upfront fees you have to pay when receiving a mortgage. In 2022, the typical settlement costs nationally for that purchase of a single-family home were $6,905 including taxes and $3,860 without, based on 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 typically range from 2 percent to five percent of the amount you’re borrowing for your mortgage.
You’ll also pay closing costs when you refinance your mortgage. Those costs, however, are usually reduced: ClosingCorp reported typically just $2,375 for refinance closing costs this past year.
States without any transfer taxes
One of the expenses that contributes to settlement costs: property transfer taxes, which cover the cost of transferring a title or deed in the seller towards the buyer. These states have no transfer taxes:
- Alaska
- Idaho
- Indiana
- Louisiana
- Kansas
- Mississippi
- Missouri
- Montana
- New Mexico
- North Dakota
- Oregon (unless you’re buying in Washington County)
- Texas
- Utah
- Wyoming
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, Ny, New Jersey, Pennsylvania | $13,596 |
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 |
About this PAGE
- Average closing costs on a home by state
- What are closing costs?
- States without any transfer taxes