Closing costs in Massachusetts typically range from 2% to 5% of the purchase price of the property. For a median home price of around $485,000, this translates to closing costs between $9,700 to $24,250.
Here is a breakdown of the average closing costs in Massachusetts:
- Title insurance: $500-$600
- Credit report fee: $25-$35
- Flood certificate: $20-$30
- Title service (closing) fee: $250-$350
- Title insurance – lender (if lender requires): $500-$600
- Title insurance – owner’s (recommended): $250-$350
- Property taxes – may require 6 months reserves in escrow: $500-$1000
- Homeowners insurance policy 6 to 12 months reserves in escrow: $500-$1000
- Transfer taxes (paid by seller): 0.75% of the sale price
- Deed prep fee: $50-$100
- Recording fees: $25-$50
- Prepaid interest – amount will depend on how many days left in the month at time of closing: $100-$200
- Lender origination fee (see Lender’s Good Faith Estimate): 1%-4% of loan amount
- Mortgage insurance premium – may require 6 months in escrow: $50-$100
- Survey (lender’s) fee: $300-$500
It is important to note that these are just averages, and your actual closing costs may vary depending on a number of factors, such as the type of property you are buying, the lender you are using, and the location of the property.
You can get a more accurate estimate of your closing costs by talking to a real estate agent or mortgage lender. They will be able to review your specific situation and provide you with an estimate based on the fees that are typically charged in your area.