Closing Cost: Average Fees Explained

Closing costs are the fees and prepaid items due when a home sale is finalized. Buyers pay lender fees, title services, appraisal and recording charges, and prepaid taxes or insurance. Sellers face their own set of costs, mostly commissions and transfer taxes.

The numbers below come from published guides and carry a check date of Oct 11, 2026. They are averages. Your lender must give you a Loan Estimate that itemizes the real costs for your loan, and that document matters more than any national figure.

The national average for a home purchase in 2025 is $4,661 per Bankrate. A second figure leaves out recording fees and taxes, which is why two published averages can differ.

Refinancing generally has its own closing costs, shown in the table above, and these also vary by lender and loan.

Closing costs are often described as a share of the price.

The two averages differ because Bankrate includes taxes and CNBC Select does not. The percentage works best as a rough planning number. A smaller loan on a lower-priced home tends to produce a lower dollar amount, though some fixed fees do not scale with the price.

Costs vary widely by location, largely because of taxes and fees set by states and local governments.

Washington, D.C. and New York sit at the high end, while Texas is far lower. Taxes, title practices, and local customs explain much of the difference. Check your own state's fees with your lender or a title company.

• Lender fees. Origination, underwriting, and application charges.
• Appraisal and inspection. Appraisals are usually required by the lender. Inspections are typically optional but common.
• Title services. Title search, title insurance, and settlement or escrow fees.
• Recording and transfer taxes. Charged by the state, county, or city.
• Prepaid items and escrow deposits. Property taxes, homeowners insurance, and mortgage interest paid ahead of time.
• Other fees. Survey, credit report, flood certification, and similar items.

Sellers also have closing costs, and these are mostly agent commissions plus smaller fees.

Seller totals that include commissions run higher than buyer figures because they include agent pay. Read the label to see whether a number includes it.

Sources measure different things. Some give a dollar average, while others give a percentage range. Some include taxes, and some count only buyer costs or only seller costs. One source describes costs as a share of the loan rather than the purchase price.

Compare each number to its definition: buyer or seller, purchase or refinance, dollar amount or share, and with or without taxes.

• Location. State and local taxes and recording fees differ widely.
• Home price and loan size. Many fees are based on a percentage.
• Loan type and lender. Fees differ among lenders, so compare Loan Estimates.
• Points. Paying discount points raises closing costs in exchange for a lower rate.
• Title and insurance. Premiums depend on the price and the area.
• Negotiation. Some fees can be shopped, and a seller may agree to cover part of the buyer's costs.

• Get Loan Estimates from several lenders and compare the fee sections.
• Shop for services that your lender allows you to choose, such as title services.
• Ask whether any lender fees can be reduced or waived.
• Ask the seller about concessions as part of your offer.
• Check whether state or local down payment and closing cost assistance programs exist where you live.

For guidance on your own purchase, talk to a lender or a licensed real estate agent.