How Much Are Closing Costs in 2026? Averages by State and How to Cut Them

The average closing cost on a US home purchase was $4,528 in 2025, or 1.04% of the sales price, according to LodeStar Software Solutions. That figure counts lender, title, recording and tax charges. It leaves out your down payment and prepaid items, so plan for more cash at the table than that number suggests.

This guide explains what the latest closing-cost data covers, how much it varies by state, and how to read your own Loan Estimate so you can spot costs worth questioning. It is written for buyers who are making offers this fall and want a realistic cash figure. Kenponet covers the full cost of a home, and closing day is where many buyers meet costs they did not plan for.

How Much Are Closing Costs in 2026?

The newest full-year data covers 2025 purchases. LodeStar's report, published in April 2026, analyzed more than 620,000 purchase quotes. It found an average total of $4,528, which was 1.04% of an average sales price of $433,632. The median was lower at $3,492, or 0.85% of the median price of $406,786.

The gap between average and median tells a story. A small number of expensive deals pull the average up. If you are a typical buyer, the median is the better starting guess. Treat both as national centers, not promises.

The same report shows costs without recording fees and taxes. Without them, the average falls to $2,993 and the median to $2,923. That difference of about $1,500 on average is mostly government charges, which you cannot negotiate. You can read the full findings in the LodeStar 2025 closing cost data report.

Other sources quote much higher numbers. Some industry guides use a range of 2% to 5% of the purchase price. The difference comes from what each study counts. LodeStar covers settlement, title and transfer items from lender quotes. Broader guides may add prepaid insurance, property tax deposits and loan points. Always ask which items a number includes.

Which States Have the Highest Closing Costs?

Delaware has the highest closing costs as a share of price, at 3.06%, according to LodeStar. New York, Vermont, Pennsylvania and Washington, DC also rank among the high-cost places. South Dakota is lowest at 0.39%, followed by Colorado at 0.50% and Iowa at 0.56%.

Transfer taxes drive most of that spread. Some states and cities charge a percentage of the sale price when a deed changes hands, while others charge very little. That is why the same house price can produce very different closing bills in different places.

The table applies each percentage to three prices. A $400,000 home costs about $1,560 to close in a low-cost state and $12,240 in the highest. Those are rough illustrations built from averages, not quotes. Your own Loan Estimate will have the real figures.

What Is Included in Closing Costs?

Closing costs are the fees you pay to finalize a mortgage and transfer a property. They fall into a few groups: lender charges, third-party services and government fees. Each group behaves differently, and only some of it can be shopped.

The Consumer Financial Protection Bureau (CFPB) explains how the Loan Estimate sorts these. Its Loan Estimate guide splits costs into origination charges, services you cannot shop for and services you can shop for. It says of origination charges that "it's the total that matters" when you compare lenders.

Common items include these:

Prepaid items deserve special attention. They are not fees for a service. They are your own future bills paid in advance, often into an escrow account. Many buyers forget them because they are not on the "closing costs" line the way a lender fee is.

Can You Shop for Closing Costs?

Yes, for some of them. The CFPB says that for services the lender requires but lets you choose, "you can save money by shopping for these services separately." Title services are the usual example. Ask your lender for its list of providers and check whether you may use a different one.

You can also compare lenders. The CFPB advises requesting Loan Estimates for the same kind of loan from several lenders, since costs vary. Compare the total of the origination section, the APR and any lender credits or points. A lower rate with high points can cost more than it saves if you move within a few years.

Rate and fee shopping connect to the bigger monthly picture. With rates elevated, a small drop in fees can matter. Our guide on what 7.4% mortgage rates mean for your monthly payment shows how rate and payment work together.

How Do You Read Your Closing Disclosure?

Compare it line by line with your Loan Estimate. The CFPB says lenders must provide the Closing Disclosure three business days before your scheduled closing, and it advises, "Use these days wisely—now is the time to resolve problems." Check the loan amount, interest rate, estimated monthly payment, closing costs and cash to close.

Ask why if anything moved. The CFPB's Closing Disclosure guide says costs for services you did not shop for should be similar but may differ somewhat from the estimate. Large changes need an explanation in writing.

Also check the small things. Your name, address and contact information should be exact. The CFPB warns that even small misspellings can cause problems. Look for a prepayment penalty or a balloon payment, which the agency calls risky.

How Much Cash Do You Need at Closing?

Cash to close equals your down payment, plus closing costs and prepaid items, minus any credits. Do the math before you tour homes, not after you win an offer. A buyer who plans only for the down payment can be short by thousands.

Here is a worked example. Say you buy a $400,000 home with 5% down. Your down payment is $20,000. Closing costs at the national average add about $4,160. Prepaid taxes and insurance might add $2,500 to $4,000, depending on your area and loan. Your cash to close lands near $26,660 to $28,160.

That is 6.7% to 7.0% of the price, even though the closing-cost share alone is only 1.04%. This is the reason to ask your lender for a full cash-to-close estimate early. Build in a cushion of at least a few thousand dollars for changes. If you are still deciding whether to buy at all, our look at renting versus buying in fall 2026 puts these costs next to rent.

Who Pays: Buyer, Seller or Both?

Buyers pay most of the costs tied to the loan, while sellers usually pay agent commissions and some transfer fees. Custom varies by state. Some places split title and transfer taxes by tradition, and others assign them to one side.

You can sometimes ask the seller to cover part of your closing costs, called a seller credit. Whether it works depends on the market and the loan type. Loan programs also cap how much a seller may contribute, so ask your lender before you write one into an offer.

Taxes continue after closing. After you buy, your property tax bill starts to matter, and the assessment may be higher than you expect. Our guide on how to check your property tax assessment and appeal it can help you manage that cost.

How Can You Lower Your Closing Costs?

You can lower closing costs by comparing lenders, shopping for title services, asking about lender credits and timing your closing. Each step saves a modest amount, and together they can cut a few hundred to a few thousand dollars.

Closing late in the month can also reduce prepaid interest, since interest is charged from the closing date to the end of that month. Ask your lender to show both options. The saving is real but small, so do not let it drive the whole plan.

Kenponet's editors checked these figures against LodeStar's report and the CFPB's guides before publishing. Prices and rules change by state and loan type, so use this as a planning guide and rely on your own Loan Estimate for the real numbers.