Average closing costs in Louisiana

Buying a home is a major financial decision, and understanding every cost involved, especially closing costs, can help you feel prepared and confident. Closing costs include the services, fees, and administrative steps needed to finalize a home purchase, and in Louisiana, both buyers and sellers contribute to them. These expenses are usually calculated as a percentage of the home’s sale price, and the exact amount can vary based on the property, the loan, and local requirements. Learning what to expect ahead of time can make budgeting easier and help you plan for a smoother closing. For more details, explore our guide on closing costs.

Key takeaways:

• Closing costs in Louisiana average about 5.37% of the home’s purchase price for buyers.
• Common expenses for buyers include loan origination fees, home inspections, appraisals, title searches, and lender’s title insurance.
• Seller expenses often cover real estate agent commissions (typically 5%–6%), prorated taxes, title fees, and deed preparation.
• Many fees — including lender charges, title services, and certain third-party costs — can be compared or negotiated to help lower your total closing expenses.

How much are closing costs in Louisiana?

With the median home sale price around $253,000, a buyer in Louisiana can expect to pay roughly $14,218 in closing costs, which equals about  5.37% of the home’s purchase price, though the total can vary depending on the property, loan type, and individual financial situation. These costs include a range of fees — such as lender charges, title insurance, appraisal, escrow services, and taxes — that buyers and sellers both contribute to at the end of the transaction.

Closing costs can also vary by location within the state due to differences in local taxes, insurance requirements, and service providers. For instance, buyers in New Orleans may encounter slightly higher costs than those in Baton Rouge or Lafayette because of variations in property values and insurance rates. It’s important for buyers to plan for these differences when estimating their total up-front expenses.

What affects closing costs in Louisiana?

Several factors can influence how much you’ll pay in closing costs, including:

• Where you’re buying: Recording fees, insurance premiums, and local taxes can differ between parishes and cities.
• The home’s price: Fees based on a percentage of the purchase price increase as the home’s cost rises.
• Your loan type: FHA, VA, and conventional loans come with different fee structures, insurance requirements, and down payment expectations.
• Title and escrow services: Charges vary depending on the provider and the complexity of the title search.
• Taxes and recording fees: Local transfer taxes, prorated property taxes, and filing fees differ across Louisiana parishes.
• Prepaid costs: Up-front payments for homeowners insurance, prepaid interest, and escrowed taxes.

Understanding how these elements come together gives you a clearer picture of your total cash to close and helps you plan with confidence. Because closing costs depend on home value, financing, and market conditions, totals can vary. Check today’s Louisiana mortgage rates to see how current rates may affect your costs.

Learn more about how your home’s value is determined and what goes into your cash to close.

Are closing costs in Louisiana above average?

Nationally, closing costs typically range from about 0.4% to 3% of a home’s purchase price. Based on the Lodestar’s average national sales price of $438,236, typical national closing costs can fall between roughly $1,750 and $13,150. In comparison, Louisiana buyers pay an average of $14,218 in closing costs.

At about 5.37% of the home’s purchase price, Louisiana’s closing costs are shaped by regional factors like insurance requirements, title and escrow fees, and local tax structures. Coastal areas may see higher totals due to flood insurance needs. Compared with nearby states, Louisiana’s average of 5.37% is a bit higher than Mississippi (4.85%), Arkansas (4.29%), and Texas (4.67%), where insurance and title fees follow similar patterns.

Overall, closing costs in Louisiana align closely with national expectations, meaning most buyers can anticipate totals similar to those found across much of the country. To better understand what goes into these expenses, explore what happens when closing on a house and learn how transfer taxes can affect your final costs.

What do Louisiana’s closing costs include?

Closing costs in Louisiana include a mix of lender fees, inspections, insurance, and Note for publishers: Please insert OG Tile CTA above this H2

administrative charges that finalize a home purchase. While some expenses come directly from your loan or mortgage process, others cover the services needed to transfer ownership and record the property. Knowing what each cost covers can help you prepare financially and avoid surprises when it’s time to close.

• Lender-related fees: Include application, origination, and credit check fees. Some loans may also charge a rate lock fee to secure your interest rate during the loan process.
• Appraisal fees: Pay for a professional home appraisal to confirm the property’s fair market value.
• Home and pest inspection fees: Cover home inspections to identify structural, mechanical, or pest-related concerns before closing.
• Title search and insurance: Ensure clear ownership and protect both buyer and lender from potential liens or title disputes. Learn more about title insurance.
• Survey fees: Verify property boundaries and easements, often necessary for homes with large lots or rural locations.
• Courier and recording fees: Pay for the delivery and official filing of property documents with local parishes.
• Notary fees: Cover the cost of legally verifying and notarizing signatures on closing documents.
• Prepaid items: Include up-front costs such as property taxes, homeowner’s insurance, flood insurance (in some areas), and homeowners association dues.
• Private mortgage insurance (PMI): Required if the down payment is less than 20%, protecting the lender in case of default.
• Attorney fees: Charged if legal review or representation is needed, which may be more common in certain Louisiana parishes.
• Mortgage discount points: Optional up-front payments that allow borrowers to lower their mortgage interest rate.

Each of these expenses plays a role in finalizing the purchase and ensuring the transaction is legally sound and properly recorded. Reviewing your Loan Estimate and Closing Disclosure can help you understand exactly what you’re paying for and why.

Who pays closing costs in Louisiana?

Both buyers and sellers in Louisiana are responsible for certain closing costs. We’ll go over who typically pays what, but keep in mind that these are general guidelines and some can be negotiated.

Closing costs for buyers

Buyers in Louisiana usually pay most of the lender- and property-related closing costs. These fees are tied to the mortgage process and ensure the property is properly valued, insured, and transferred into the buyer’s name. Common buyer closing costs in Louisiana include:

• Loan application and origination fees
• Home appraisal and inspection
• Title search and lender’s title insurance
• Prepaid expenses (such as taxes and insurance)
• Recording and notary fees
• Attorney fees (if used)
• Mortgage discount points (if purchased)

Each of these expenses helps protect both the buyer and the lender, ensuring a smooth and legally sound transaction. Planning ahead for these costs can help first-time and repeat buyers stay on budget. For more guidance on preparing for up-front homebuying expenses, check out first-time home buyer expenses to save for.

Closing costs for sellers

Sellers in Louisiana also have their own set of closing costs, some of which overlap with buyer expenses—like title and recording fees. Typically, the largest seller expense is the real estate agent commission, which is fully negotiable between the seller and their agent. Other fees and prorated costs may apply as well. Common seller closing costs in Louisiana include:

• Real estate agent commissions
• Owner’s title insurance and title-related fees
• Prorated property taxes and HOA dues
• Deed preparation and recording fees
• Attorney fees (if used)
• Outstanding mortgages and liens
• Seller concessions (such as home repairs or warranties)

For sellers who still have an active loan on their property, these costs may also include mortgage payoff and transfer fees. To learn more about selling while carrying an existing mortgage, explore can you sell a house with a mortgage.

How to reduce your closing costs in Louisiana

While some closing costs in Louisiana—like title insurance, property taxes, recording fees, and prepaid interest—are fixed and nonnegotiable, others can be reduced with the right planning. Buyers who research programs and compare options ahead of time may save hundreds or even thousands of dollars before closing.

• Research home buyer assistance programs: Louisiana offers several programs designed to make homeownership more affordable. The Louisiana Housing Corporation (LHC) provides down payment and closing cost assistance through initiatives such as the Market Rate GNMA Program and the Mortgage Revenue Bond Program. Qualified buyers may also explore USDA Rural Development or FHA loans, which can lower up-front costs and reduce out-of-pocket expenses at closing.
• Shop around for a lender: Not all lenders charge the same fees. Comparing multiple loan offers can reveal differences in origination, underwriting, or processing charges. Learn more about how to choose a mortgage lender to find one that fits your financial goals.
• Negotiate seller concessions: Depending on market conditions, sellers may agree to cover part of your closing costs as a credit. This arrangement—known as a seller concession—can reduce the cash you need upfront.
• Consider a no-closing-cost mortgage: Some lenders offer no-closing-cost mortgage options that roll fees into your loan amount or slightly raise your interest rate, helping you pay less at closing.

Although not every expense can be adjusted, it’s worth learning which closing costs are negotiable to understand where you have room to save.

FAQs on closing costs in Louisiana

Does Louisiana require paying for a real estate attorney?

No. Louisiana doesn’t require buyers or sellers to hire a real estate attorney to complete a home purchase. Most transactions are handled by real estate agents, title companies, and closing professionals who prepare documents and oversee the transfer of ownership. Still, some buyers and sellers choose to bring in an attorney for additional guidance, especially if the sale involves complex terms, estate issues, or unique property circumstances. Learn more about when hiring a real estate attorney may be helpful.

When do Louisiana buyers find out their closing costs?

Buyers in Louisiana receive an estimate of their closing costs early in the mortgage process. Lenders provide a Loan Estimate within 3 business days of receiving an application, outlining projected fees, taxes, and prepaid expenses. At least 3 days before closing, buyers receive a Closing Disclosure that lists their final costs line by line. Reviewing both the Loan Estimate and the Closing Disclosure helps ensure there are no last-minute surprises.

When and how will I pay my Louisiana closing costs?

Closing costs in Louisiana are typically paid on closing day when ownership officially transfers. Most buyers pay by cashier’s check or bank wire sent to the title or closing company. The exact amount due and payment instructions appear in your Closing Disclosure before the appointment. Learn more about what to expect when it’s time to close on a house.

How can I save up for Louisiana’s closing costs?

Since closing costs in Louisiana average around 5.37% of the home’s purchase price, building a savings plan early can make the process easier. Setting aside a portion of each paycheck, using bonuses or tax refunds, or establishing a dedicated savings account can help you reach your goal faster. First-time buyers may also explore state and federal programs that assist with down payment or closing expenses. For additional strategies, see how to save for a house.

Are Louisiana’s closing costs deductible on my taxes?

Most closing costs in Louisiana aren’t tax deductible, but a few exceptions exist. Fees like title insurance, appraisal charges, and recording costs generally can’t be written off. However, certain expenses—such as prepaid mortgage interest (points) and property taxes—may qualify for deductions during the year you purchase the home. Homeowners who itemize can also take ongoing deductions for mortgage interest and property taxes. Learn more in are closing costs tax deductible and tax deductions for homeowners, or review IRS guidance in Publication 530 and Tax Benefits for Homeowners.

The bottom line: Prepare your finances for Louisiana closing costs

Closing costs in Louisiana typically average about 5.37% of the home’s purchase price, covering expenses such as lender fees, title services, insurance, taxes, and recording charges. Both buyers and sellers share these costs, though the exact amounts can shift based on location, loan type, and negotiated terms. Understanding which fees are fixed and which may offer room for comparison or negotiation can help you plan your budget with more confidence. If you’re preparing to buy a home in Louisiana, getting preapproved and beginning your mortgage application early can help you stay ahead of these expenses.