Average closing costs in Maryland

Buying a home is a major step, and understanding all the costs involved, including closing costs, can help you prepare with confidence. These expenses cover the services and paperwork needed to finalize the transaction. In Maryland, both buyers and sellers contribute to closing costs, and the total amount varies based on the home, the loan type, and local requirements. Knowing what to expect helps you plan ahead and avoid surprises when closing day arrives.

Key takeaways:

• Closing costs in Maryland average about 4.70% of the home’s purchase price for buyers.
• Common buyer expenses include loan origination fees, home inspections, appraisals, and title insurance.
• Seller expenses often include real estate agent commissions (which are fully negotiable), 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 reduce total closing expenses.

How much are closing costs in Maryland?

With a median home sale price of $442,400, a typical buyer in Maryland can expect to pay about $21,062 in closing costs, which equals roughly 4.70% of the home’s purchase price. These expenses include lender fees, title insurance, appraisal costs, escrow services, and taxes — all of which buyers and sellers contribute to when finalizing a home purchase.

Closing costs in Maryland can also vary based on location due to differences in county transfer taxes, recording fees, and local service providers. For example, buyers in Montgomery County, Baltimore City, and Prince George’s County may see different totals depending on local tax rates and title fees. Planning for these variations can help buyers estimate their upfront expenses more accurately.

What affects closing costs in Maryland?

• Property location: Local transfer taxes and recording fees differ by county.
• Home price: Higher-priced homes often come with higher percentage-based fees. Learn more about home value factors.
• Loan type and down payment: FHA, VA, and conventional loans have different fee structures, which are also influenced by current mortgage rates in Maryland.
• Title and escrow fees: Costs vary by provider and property history.
• Taxes and recording fees: Maryland has one of the more complex transfer tax structures in the region.
• Insurance and prepaid items: Homeowners insurance, prepaid interest, and taxes influence the final amount due. More details on what contributes to cash to close.

Are closing costs in Maryland 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. Maryland’s average buyer closing cost of $21,062, or 4.70%, sits above national range.

Maryland’s closing costs compare closely with its neighbors. Virginia tends to average about 3.44%, whereas Pennsylvania runs higher at roughly 5.27%, largely due to variations in transfer taxes, recording fees, and local service costs.

Overall, Maryland’s closing costs align closely with national expectations, and buyers can anticipate totals similar to those found across much of the country. To understand how these fees come together on closing day, visit this overview of what happens when closing on a house, and review how transfer taxes may affect your final costs.

What do Maryland’s closing costs include?

Closing costs in Maryland cover the various fees and services required to finalize a home purchase. Some expenses are tied to the lender and loan process, while others relate to inspections, title work, insurance, and administrative requirements. Understanding what each fee represents can help buyers plan ahead and avoid surprises at closing.

• Lender-related fees: Application, origination, and credit check fees; some loans may also include rate-lock charges outlined in this overview of mortgage rate locks.
• Appraisal fees: Required to confirm the property’s market value, similar to standard home appraisal practices.
• Home and pest inspection fees: Covers inspections for structural issues, safety concerns, and pests; many follow the elements included in a typical home inspection checklist.
• Title search and insurance: Protects both buyer and lender from ownership disputes or undiscovered liens, as outlined in guides to title insurance.
• Survey fees: Verifies boundaries and easements, which may be required depending on the property’s history.
• Courier fees: Covers document delivery throughout the closing process.
• Recording fees: Paid to the county to officially record the property transfer.
• Notary fees: Ensures legal verification of closing signatures.
• Prepaid items: Includes upfront payments for homeowners insurance, property taxes, prepaid interest, or homeowners association dues.
• Private mortgage insurance (PMI): Required when putting down less than 20% to protect the lender.
• Attorney fees: Paid when legal review or representation is requested.
• Rate-lock fees: May apply when securing an interest rate early, depending on the lender, consistent with common rate-lock practices.
• Mortgage discount points: Optional upfront payments that reduce the interest rate, explained in this overview of mortgage points.

Each of these items plays a role in ensuring a smooth and accurate home purchase. Reviewing your Loan Estimate and Closing Disclosure will show exactly which fees apply and why.

Who pays closing costs in Maryland?

Both buyers and sellers in Maryland are responsible for certain closing costs. While many fees follow standard patterns, some charges can still be negotiated depending on the market and what’s outlined in the purchase agreement.

Closing costs for buyers

Buyers typically cover most lender- and property-related expenses. These costs support the mortgage process and ensure the home is properly evaluated, insured, and transferred. Common buyer closing costs include:

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

Some of these fees—such as lender charges or discount points—may be negotiable or vary by provider. Planning ahead can help buyers stay on budget. More guidance is available in first-time home buyer expenses to save for.

Closing costs for sellers

Sellers in Maryland also have several closing expenses, including some overlap with buyer fees. Real estate agent commissions make up the largest cost for most sellers, though prorated taxes, payoff fees, and administrative charges also add up. Common seller closing costs include:

• Real estate agent commissions
• Owner’s title insurance and title-related fees
• Prorated property taxes and HOA fees
• Deed preparation and recording fees
• Attorney fees (if used)
• Outstanding mortgages and liens
• Seller concessions (if negotiated)

How to reduce your closing costs in Maryland

While some closing costs in Maryland — such as title insurance, recording fees, property taxes, and prepaid interest — are fixed, others can be lowered with the right planning. Buyers who compare options and explore assistance programs can often save significantly before closing.

• Research home buyer assistance programs: Maryland offers several programs that can help lower upfront costs for eligible buyers. In Maryland, the statewide Maryland Mortgage Program (MMP) offers down payment and closing-cost help, and many counties or cities add local offerings — for example, the Prince George’s County Pathway to Purchase, Baltimore County’s SELP, or the city-level Gaithersburg Homebuyer Assistance Loan Program offer grants or deferred loans to eligible buyers. Many areas in Maryland may also qualify for USDA loans, which require little or no money down and can reduce total cash needed at closing.
• Shop around for a lender: Lender fees vary widely. Comparing loan estimates can help you find a lender with lower origination or processing charges. Guidance on evaluating lenders appears here: how to choose a mortgage lender.
• Negotiate seller concessions: Depending on market conditions, sellers may agree to cover part of your closing costs as a credit. More insight into how concessions work can be found in this overview of seller concessions.
• Consider a no-closing-cost mortgage: Some lenders offer options that reduce upfront fees by rolling costs into the loan or adjusting the interest rate. This is explained further in this guide to no-closing-cost mortgages.

Even though some expenses can't be changed, understanding which closing costs are negotiable can help buyers find opportunities to save.

FAQ on closing costs in Maryland

Does Maryland require paying for a real estate attorney?

Maryland doesn’t require buyers or sellers to hire a real estate attorney, though many choose to involve one for added guidance. Most transactions are completed through real estate agents, title companies, and settlement professionals who manage the documentation and closing details. More insight is available in this overview of real estate attorneys.

When do Maryland buyers find out their closing costs?

Buyers receive a Loan Estimate within three business days of applying for a mortgage. This outlines expected fees, taxes, and lender charges. At least three days before closing, buyers receive a Closing Disclosure with the final amount owed. Reviewing both helps avoid last-minute surprises. Learn more about the Loan Estimate and the Closing Disclosure.

When and how will I pay my Maryland closing costs?

Closing costs are usually paid on closing day when the home officially transfers ownership. Most buyers pay by cashier’s check or wire transfer to the title or settlement company. The final amount and instructions appear in the Closing Disclosure ahead of time. More details are available in this guide on time to close on a house.

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

Maryland closing costs average around 4.70% of the home’s purchase price. Many buyers save gradually or use bonuses and tax refunds to prepare. Assistance programs such as the Maryland Mortgage Program (MMP), Pathway to Purchase, or Baltimore County’s SELP can help reduce upfront costs. Additional strategies are outlined in this guide on how to save for a house.

Are Maryland’s closing costs deductible on my taxes?

Most closing costs aren’t tax deductible, including appraisal fees, title insurance, and recording charges. However, prepaid mortgage interest and property taxes may qualify for deductions. Homeowners who itemize may also claim ongoing deductions tied to mortgage interest and taxes. More information is available in guides on tax-deductible closing costs and homeowner tax deductions, as well as IRS Publication 530 and Tax Benefits for Homeowners.

The bottom line: Prepare your finances for Maryland closing costs

Closing costs in Maryland often average around 4.70% of the home’s purchase price and include lender fees, title services, taxes, insurance, and county recording charges. Both buyers and sellers share these expenses, though the exact amounts depend on factors like loan type, property location, and negotiated terms. Understanding which costs apply to your situation—and which ones you may be able to reduce—can help you budget with more confidence. If you’re planning to buy a home in Maryland, getting preapproved and starting the mortgage process early can help you prepare for these expenses.