How Much Are Closing Costs? (And How to Budget for Them)

Closing costs on a home purchase typically run 2 to 5% of the purchase price. On a $350,000 home, budget $7,000 to $17,500 in closing costs on top of your down payment. The national average is approximately 3.5%, or $12,250 on a $350,000 home.

Itemized breakdown of typical closing costs. Loan origination fee: 0.5-1% of loan ($1,400-$2,800 on $280K loan). Appraisal: $400-$600. Credit report: $30-$50. Title search and insurance: $1,000-$2,000. Attorney fees: $500-$1,500 (varies by state). Recording fees: $100-$300. Survey: $300-$500. Escrow deposits (prepaid taxes and insurance): $2,000-$5,000. Points (if buying down rate): 0-2% of loan. Homeowner insurance first year: $1,200-$2,400.

Buyer vs seller costs. Buyers pay the majority of closing costs listed above. Sellers typically pay real estate agent commissions (5-6% of sale price) and transfer taxes. In some markets, sellers may offer to cover a portion of buyer closing costs as a negotiation concession — ask your agent.

How to reduce closing costs. Shop for title insurance (prices vary 30%+ between providers). Negotiate the origination fee (many lenders will reduce or waive it to win your business). Ask the seller to contribute toward closing costs (common in buyer's markets). Look into first-time buyer programs — many states offer closing cost assistance grants of $2,000 to $10,000. Some lenders offer no-closing-cost mortgages where costs are rolled into a slightly higher interest rate. Use the [mortgage calculator](/calculators/mortgage) to see how different scenarios affect your total cost and the [budget calculator](/calculators/budget) to plan your savings target.

Frequently Asked Questions:

Can closing costs be rolled into the mortgage? Sometimes, through lender credits (you accept a higher rate in exchange for lower upfront costs). FHA and VA loans allow some costs to be financed.

When are closing costs due? At the closing table, typically 30-45 days after your offer is accepted. You receive a Closing Disclosure document 3 business days before closing with final numbers.