By: Amy Fontinelle | Published Sept. 28, 2020
Image source: Getty Images
If you're shopping for a mortgage, you've probably read that closing costs on a home loan are usually 2% to 5% of the amount borrowed.
That's a big range. If you're buying or refinancing a median-value home, which Zillow valued at about $256,000 at the end of August 2020, that's anywhere from $5,000 to $12,500 in closing costs.
You'll need more information than that to know whether a mortgage offer is a good deal.
To help you make the best decision on your mortgage offer, we've gathered information on the average mortgage closing costs in 2020.
- The average closing costs in the United States total $5,749, including taxes.
- The average closing costs without taxes come to $3,339.
- The District of Columbia has the highest closing costs at over $25,000 with taxes.
- Indiana has the lowest average closing costs at $1,909.
- Pennsylvania residents pay, on average, 4.88% of their home price in closing costs -- the highest of any state.
- Colorado, Wyoming, Montana, and Indiana residents pay less than 1% of their home sale price in closing costs.
- San Francisco, CA, has the highest closing costs of any city at $11,125.
- Centralia, IL, has the lowest closing costs of any city at $1,821.
What are closing costs?
Closing costs are fees that borrowers pay to finalize a home mortgage. They include both lender fees and third-party fees.
You can shop around for a mortgage, which gives you some say in the lender fees you'll pay. You can also shop around for some third-party fees. Your loan estimate will show you which ones are included.
Here are some examples of lender fees you might need to pay. Not all of them will necessarily apply to your situation.
- Loan application fee
- Prepaid interest
- Points to reduce the interest rate
- Origination fee or loan fee
- Broker fee
- Underwriting fee
- Mortgage insurance
- Rate lock or rate lock extension fee
Here are some examples of third-party fees you might have to pay. Again, some fees may not apply to your loan.
- Title search
- Lender's title insurance
- Borrower's title insurance
- Appraisal fee
- Pest inspection fee
- Flood hazard determination fee
- Credit check fee
- Settlement or escrow agent fee
- Attorney fee (in states where borrowers need a real estate attorney)
- Deed recording fee
- Property transfer tax
- Courier fee
- Wire transfer fee
- Condo certification fee
- Homeowners association certification fee
- Loan document preparation fees
- Prepaid homeowners insurance
- Escrow reserves
- Prepaid property taxes
- Prepaid flood insurance
- Notary fees
- VA funding fee, FHA up-front mortgage insurance premium, or USDA guarantee fee
Average closing cost figures
As we've seen, the list of potential closing costs you might have to pay is huge. The specific costs and their amounts can vary dramatically by location, and not just because of variations in home prices.
One of the biggest differences lies in whether transfer taxes apply to transactions in your area. To see what's normal for closing costs where you live or where you're about to buy, check out these figures from ClosingCorp's Closing Cost Trends report. It was released in April 2020 and is based on costs in 2019.
Average closing costs in the United States: $5,749
The average closing costs in the United States, if you include taxes, are $5,749.
Without taxes, the average closing costs are $3,339.
Which states have the highest closing costs?
Closing costs vary widely by state. We'll put the full list in a table below, but here are some highlights at the top of the range:
- District of Columbia ($25,800)
- Delaware ($13,273)
- New York ($12,847)
- Washington ($12,406)
- Maryland ($11,876)
- District of Columbia ($5,723)
- New York ($5,612)
- Hawaii ($5,388)
- California ($5,064)
- Washington ($4,538)
As a percentage of home purchase price
- Pennsylvania (4.88%)
- Delaware (4.72%)
- District of Columbia (4.00%)
- Maryland (3.65%)
- New York (3.05%)
Which states have the lowest closing costs?
- Indiana ($1,909)
- Missouri ($2,063)
- South Dakota ($2,159)
- Iowa ($2,194)
- Kentucky ($2,276)
- Indiana ($1,909)
- Nebraska ($1,952)
- Iowa ($1,954)
- South Dakota ($2,002)
- Arkansas ($2,056)
As a percentage of the purchase price
- Colorado (0.86%)
- Wyoming (0.86%)
- Montana (0.95%)
- Indiana (0.99%)
- Missouri (1.02%)
Which cities have the highest closing costs?
San Francisco has the highest closing costs among U.S. cities, but all top five are in California.
- San Francisco, CA: $11,125
- San Jose, CA: $10,767
- Los Angeles, CA: $8,113
- Santa Cruz, CA: $5,970
- Napa, CA: $5,812
Which cities have the lowest closing costs?
Centralia, Illinois is a small town with the lowest closing costs of any American city.
- Centralia, IL: $1,821
- London, KY: 1,984
- Union, SC: $2,139
- Summerville, GA: $2,301
- Miami, OK: $2,632
13 states with no real estate transfer taxes
Real estate transfer taxes aren't paid in 13 states, so the average closing costs in these states are unaffected by taxes.
- Utah: $4,026
- Texas: $3,744
- Arizona: $3,631
- Arkansas: $3,517
- Idaho: $3,063
- New Mexico: $2,908
- Montana: $2,773
- Mississippi: $2,548
- Kansas: $2,459
- Wyoming: $2,430
- North Dakota: $2,428
- Missouri: $2,063
- Indiana: $1,909
Average closing costs by state
Here's all the data from the ClosingCorp report, organized from highest closing costs to lowest:
|State||Average home sale price||Average closing costs with taxes||Average closing costs without taxes||Percentage of home sale price|
|District of Columbia||$645,108||$25,800||$5,723||4.00%|
Data source: ClosingCorp (2020).
Here's how that data looks plotted on a map:
Who pays closing costs?
If you're the borrower, closing costs are your responsibility. But that doesn't mean you can't get help paying them. There are several ways to cover your closing costs on a mortgage.
- Pay cash out of pocket at the closing table. This option can be the least expensive in the long run if you can afford to part with the cash now and plan to keep your loan for a long time.
- Ask the lender to pay your closing costs. Your lender may be willing to cover some or all of your closing costs in exchange for a higher interest rate. This option might be best if you don't have extra cash or if you don't plan to keep your loan for a long time. Paying a higher interest rate for a few years can be less expensive in the long run.
- Roll your closing costs into your mortgage. Instead of paying cash up front or paying a higher interest rate, you can finance a larger sum by tacking your closing costs onto the loan principal. Your monthly payment will be slightly higher, and you'll pay interest on the additional amount you're financing. If you're close to the upper limit of what a lender will give you, this might not be possible.
- Ask the seller to pay your closing costs. If you're buying a home and not refinancing, the seller might be willing to cover part or all of your closing costs. If the seller pays them, it's called a "seller concession" or a "seller credit," and you might have to pay more for the house to make up for it. As a result, asking the seller to pay your closing costs can end up being just another way of financing them, especially in a seller's market. In a buyer's market, you'll have more negotiating power.
How to save on closing costs
Your efforts to save money on closing costs shouldn't just focus on limiting the cash you bring to the closing table. You should take steps to lower the costs themselves, too.
- Get loan estimates from at least three lenders. Make sure you're getting estimates for the exact same type of loan so you can make an accurate comparison of the closing costs.
- Shop around for the closing services you're allowed to choose your own vendor for. The Consumer Financial Protection Bureau recommends shopping around for title insurance as a way to save a few hundred bucks.
- Go ahead and finance them. If you're planning to keep your loan for only a few years, paying a lot of cash up front for that loan could be more expensive than making a higher monthly payment.
- Ask about closing cost grants. If you're a low- to moderate-income homebuyer, you might qualify for a closing cost grant, depending on what's available where you live.
- Ask a relative to help you out with a gift: If you can demonstrate to your family that you've been financially responsible, they may be happy to help with a cash gift to put toward your down payment or closing costs. The lender may require a gift letter to prove that you didn't borrow the funds.
- ClosingCorp (2020). "ClosingCorp Reports Average Mortgage Closing Cost Data for 2019."
- Consumer Financial Protection Bureau (n.d.). "Closing on Your New Home."
- Consumer Financial Protection Bureau (n.d.). "Loan Estimate Explainer."
- National Association of Realtors (n.d.). "Summary of Real Estate Transfer Taxes by State."
- Zillow (2020). "United States Home Prices & Values."
Average Closing Price means the average of the closing market prices of a Share over the last five (5) Market Days, on which transactions in the Shares were recorded, immediately preceding the date of making the On-Market Share Purchase or, as the case may be, the day of the making of an offer pursuant to the Off- ...
Closing costs typically range from 3%–6% of the home's purchase price. 1 Thus, if you buy a $200,000 house, your closing costs could range from $6,000 to $12,000. Closing fees vary depending on your state, loan type, and mortgage lender, so it's important to pay close attention to these fees.
For home buyers, closing costs in New Jersey are roughly 2-5% of the home's purchase price. The exact number can go up or down depending on many factors - such as whether you have to pay for an HOA or PMI, as well as factors like your home's size (which can impact the cost of the inspection, etc).
How Much Are Closing Costs in North Carolina? Closing costs in North Carolina run, on average, $2,766 for an average home loan of $212,894, or 1.30 of the home's price, according to a 2021 report by ClosingCorp, which provides research on the U.S. real estate industry.
How You Find Average Price? Average price is calculated by taking the sum of the values and dividing it by the number of prices being examined.
Divide the total amount invested by the total shares bought. You can also figure out the average purchase price for each investment by dividing the amount invested by the shares bought at each purchase. Voila! You now have your average purchase price for your stock position.
Generally, deductible closing costs are those for interest, certain mortgage points and deductible real estate taxes. Many other settlement fees and closing costs for buying the property become additions to your basis in the property and part of your depreciation deduction, including: Abstract fees.
Indiana has the lowest average closing costs at $1,909. Pennsylvania residents pay, on average, 4.88% of their home price in closing costs -- the highest of any state. Colorado, Wyoming, Montana, and Indiana residents pay less than 1% of their home sale price in closing costs.
Typically, buyers and sellers each pay their own closing costs. A home buyer is likely to pay between 2% and 5% of their loan amount in closing costs, while the seller could pay 5% to 6% of the sale price to their real estate agent. But it doesn't always work out that way.
In New Jersey, as in most states, it's common for both the buyer and seller to have their own closing costs during a home sale. It's typical for sellers to pay for the real estate agent commissions, transfer fees relating to the sale of the home, and (in some cases) their own attorney fees.
Both sellers and buyers are responsible for paying certain closing costs on a property in New Jersey. Generally, the seller pays their attorney fees, transfer fees, and realtor commissions.
Sales Tax: Sales Tax is not due on home sales. Realty Transfer Fee: Sellers pay a 1% Realty Transfer Fee on all home sales. The buyer is not responsible for this fee. However, buyers may pay an additional 1% fee on all home sales of $1 million or more.
In North Carolina, closing costs are paid by both the buyer and seller. Your closing costs will vary depending on the home's purchase price, the location and whether you're paying in cash.
The state's real estate transfer tax is $1 for every $500 of value. So, the transfer taxes on a $500,000 property would be $1,000.
Home buyers aren't usually responsible for paying NC realtor fees. Sellers typically cover the fees for both the seller's agent and the buyer's agent. However, as the buyer, you may still be eligible for a commission rebate, which can put money back in your pocket after you buy a home or help lower closing costs.
Average cost (AC), also known as average total cost (ATC), is the average cost per unit of output. To find it, divide the total cost (TC) by the quantity the firm is producing (Q). Average cost (AC) or average total cost (ATC): the per-unit cost of output.
- Average fixed cost = Total fixed cost/ Quantity of units produced.
- Average variable cost. It is evaluated by dividing the total variable cost incurred during the period by the number of units produced.
The notion of total cost is used to define average cost (the average cost of a unit of output is the total cost divided by the number of units produced) and marginal cost (the marginal cost of a given unit of output is the increase in the total cost required to produce that unit).
Cost basis is the amount you paid for an investment, but it isn't always what you paid when you purchased it. Reinvesting dividends or capital gains will increase your cost basis.
The tax credit is equal to 10% of your home's purchase price and may not exceed $15,000 in 2021 inflation-adjusted dollars. Assuming a 2 percent inflation rate, the maximum first-time home buyer tax credit would increase as follows over the next five years: 2021: Maximum tax credit of $15,000.
- Mortgage Interest. If you have a mortgage on your home, you can take advantage of the mortgage interest deduction. ...
- Home Equity Loan Interest. ...
- Discount Points. ...
- Property Taxes. ...
- Necessary Home Improvements. ...
- Home Office Expenses. ...
- Mortgage Insurance. ...
- Capital Gains.
Energy-efficient home upgrades can make you eligible for a tax deduction. "You can claim a tax credit for energy-efficient improvements to your home through Dec. 31, 2021, which include energy-efficient windows, doors, skylights, roofs, and insulation," says Washington.
Typically, closing costs are largely based on the purchase price of the home, but some states with lower average home prices can have higher closing costs as a percentage of the home price.
“By and large most transactions close within a matter of days of the estimated closing date,” Cullen says. “The average would be four to six weeks in total – it takes probably two or three weeks for the client to get their full loan offer and about three weeks to do the balance of the legal work.”
The average closing costs in Florida come to approximately 2.58% of the purchase price. It may seem insignificant, but the amount you have to pay can quickly climb if you're buying an expensive home. Across the state, the average home sells for somewhere between $300,000 and $400,000.
The party that pays for a title search is not necessarily set in stone. The buyer of a home traditionally pays for a search, but if your housing market is in particularly bad shape, you might be able to convince the seller to pay up for a search themselves.
Q: Who pays for Title insurance? A: In most cases the buyer pays for the insurance premium on the owner's policy and the lender's policy. The insurance premium is part of the closing costs. In New Jersey the lender's policy cost is only a nominal fee added to the owner's premium.
New Jersey law does not require the use of an attorney for real estate transactions. However, many state residents still decide to engage legal advice when buying or selling a home. Review the common situations when a real estate attorney can assist with a New Jersey sale or purchase.
Eligibility Requirements and Income Guidelines
You must be age 65 or older, or disabled (with a Physician's Certificate or Social Security document) as of December 31 of the pretax year.
Purchase Loan Escrows. The escrow account calculation for purchase loans will essentially collect 12 months of Homeowner's Insurance, 3 months of extra insurance, and 3 months of property taxes. All of these are part of the Prepaid Closing Costs.
New Jersey exit tax exemptions
If you remain a New Jersey resident, you'll need to file a GIT/REP-3 form (due at closing), which will exempt you from paying estimated taxes on the sale of your home. Instead, any applicable taxes on sales gains are reported on your New Jersey Gross Income Tax Return.
Who pays closing costs in NC buyer or seller? Paying a share of closing costs is the responsibility of both a buyer and a seller in North Carolina. The list of closing costs varies somewhat for each side. However, there are several items that both will pay.
How much does it cost to register a vehicle? When you register your car, you will be required to pay a title fee, highway-use tax and plate fee. The fee for a new title is $56. The state highway-use tax is $3 of a vehicle's value, and won't exceed $250 for new residents.
When ownership in North Carolina real estate is transferred, an excise tax of $1 per $500 (or fraction thereof) is levied on the value of the property (i.e. $600 transfer tax on the sale of a $300,000 home). This tax is typically paid by the seller.
North Carolina home sellers are required to pay property taxes on the days they've owned their home in the calendar year. Taxes are prorated and split between the seller and buyer. The tax is due at closing.
In most places, the tax is $1 for every $500 in value of the home. If a home sold for $200,000, the taxes would be $500. In North Carolina, the transfer tax is typically paid by the seller.
The rate varies based on a number of factors, such as your income and size of gain. Capital gains tax on residential property may be 18% or 28% of the gain (not the total sale price).
On average, real estate agents make $84,459 per year according to salaries reported by Indeed users.
Keller Williams has a competitive split structure for real estate agents. They offer a 70-30 split. Meaning, 70 percent of the commission will go to the real estate agent and 30 percent will go to the brokerage. In addition, a real estate agent will pay a six percent franchise fee for each transaction up to $3,000.
North Carolina is a dual agency state, which means that the seller and the buyer can both have an agent if they chose. You don't have to use the agent who is listing the home. So, the question is do you need to use a buyer's agent when you go searching for your new home?
LTP vs Closing Price
The LTP is the price of the last transaction that got executed on the exchange. The closing price is the weighted average price based on the last 30 minutes of trading.
The Closing Price helps the investor understand the market sentiment of the stocks over time. It is the most accurate matrix to determine the valuation of stock until the market resumes trading the next day.
2 Answers. Show activity on this post. You will get the share value at the time you sold, not the price at end of day.
The listed closing price is the last price anyone paid for a share of that stock during the business hours of the exchange where the stock trades. The opening price is the price from the first transaction of a business day. Sometimes these prices are different.
Current price is also known as market value. It is the price at which a share of stock or any other security last traded.
While the last traded price is the price at which the stock was last traded, the closing price of the stock is calculated to be the weighted average of all the prices at which the stock is traded in the last half hour.
The closing price of a stock or another security is the last price at which it trades during the regular trading day. The asking price of a stock, more commonly known as the ask price, is the minimum price for which a seller is willing to sell it.
What Is the Adjusted Closing Price? The adjusted closing price amends a stock's closing price to reflect that stock's value after accounting for any corporate actions. It is often used when examining historical returns or doing a detailed analysis of past performance.
The opening price is determined based on the principle of demand supply mechanism. The equilibrium price is the price at which the maximum volume is executable. In case more than one price meets the said criteria, the equilibrium price is the price at which there is minimum unmatched order quantity.
Weighted Average Closing Price means the average of the closing bid and asked prices of the Common Stock quoted in the over-the-counter market summary or the last reported sale price of the Common Stock or the closing price quoted on the Nasdaq National Market System or on any exchange on which the Common Stock is ...
- Invest for the Long Term. ...
- Contribute to Your Retirement Accounts. ...
- Pick Your Cost Basis. ...
- Lower Your Tax Bracket. ...
- Harvest Losses to Offset Gains. ...
- Move to a Tax-Friendly State. ...
- Donate Stock to Charity. ...
- Invest in an Opportunity Zone.
You probably want to hang it up around the age of 70, if not before. That's not only because, by that age, you are aiming to conserve what you've got more than you are aiming to make more, so you're probably moving more money into bonds, or an immediate lifetime annuity.
Generally, any profit you make on the sale of a stock is taxable at either 0%, 15% or 20% if you held the shares for more than a year or at your ordinary tax rate if you held the shares for a year or less. Also, any dividends you receive from a stock are usually taxable.
Typically, price changes in the after-hours market have the same effect on a stock that changes in the regular market do: A $1 increase in the after-hours market is the same as a $1 increase in the regular market.
noun. : a price at which goods or commodities are sold or are to be sold and which is filed by businesses at a central point of registration and open to all businesses concerned.
Although the stock market and exchanges technically have hours that they operate within, you can still trade before things open up. This is called premarket trading, and it allows investors to buy and sell stocks before official market hours.