How much are closing costs?

What buyers pay at closing

Closing costs are the fees and charges for completing a purchase, on top of your down payment. For buyers they commonly add up to about 2% to 5% of the price, depending on the state, the loan and the time of year you close. This estimate lists each item with a typical range.

The main categories

Lender costs include origination and underwriting fees, the appraisal and the credit report. Title and settlement covers title insurance, your attorney in New Jersey and New York, escrow fees in California, the survey and recording fees. Taxes vary by state. Prepaids and escrow are not fees but money set aside up front: your first year of homeowners insurance, a few months of property taxes and insurance for your escrow account, and interest from closing to the end of the month.

State differences

In New York, buyers with a mortgage pay the mortgage recording tax. In Nassau and Suffolk counties it’s 1.05% of the loan, of which the lender pays 0.25% on most one- to six-family homes, and buyers pay a 1% mansion tax on homes of $1 million or more. In New Jersey, the seller pays the realty transfer fee and, since July 10, 2025, the graduated mansion tax on sales over $1 million. In the Bay Area, transfer taxes are customarily paid by the seller.

An example

For a $650,000 home in Essex County, New Jersey, with 20% down, the estimate is about $14,000 to $29,000, or roughly 2% to 4% of the price, including prepaid taxes and insurance. For a $1,200,000 home in Nassau County with 20% down, the mortgage recording tax (about $7,650) and mansion tax ($12,000) push the total to roughly $39,000 to $59,000.

How to lower them

• Compare Loan Estimates from at least three lenders on the same day.
• Ask for seller credits toward closing costs when the market allows.
• Check down payment assistance programs, many of which cover closing costs too.

Questions buyers ask