Average closing costs in Massachusetts

Understanding every cost associated with buying a home — including closing costs — can make the process smoother and more predictable. These fees cover essential services required to complete the sale. In Massachusetts, buyers and sellers both share these expenses, and the total amount depends on factors like home price, market conditions, and the type of loan you choose. Taking time to budget now can help you stay on track as you approach closing.

Key takeaways:

• Closing costs in Massachusetts average about 2.44% of the home’s purchase price for buyers.
• Typical buyer expenses include loan origination fees, inspections, appraisals, and title insurance.
• Sellers generally cover real estate agent commissions (fully negotiable), prorated taxes, title fees, and deed preparation.
• Several fees — such as lender charges, title services, and some third-party costs — can be compared or negotiated to help lower overall closing expenses.

How much are closing costs in Massachusetts?

With a median home sale price of $638,100, homebuyers in Massachusetts typically pay around $15,995 in closing costs — about 2.44% of the home’s purchase price. Total costs depend on the property, the mortgage product, and regional requirements, and include lender fees, appraisal charges, title services, escrow, and taxes.

Closing costs also vary by location within the state. Buyers may see different totals in Boston, Worcester, or Springfield based on differences in tax rates, attorney fees, and local service providers. Because Massachusetts often requires attorney involvement in real estate transactions, buyers should plan for that additional cost as well.

What affects closing costs in Massachusetts?

• Property location: Attorney requirements and municipal fees vary widely.
• Home price: Higher home prices often lead to higher absolute closing costs. Review factors that impact home value.
• Loan type and down payment: Loan programs influence lender fees and insurance requirements.
• Title and escrow fees: Often higher in markets like Greater Boston.
• Taxes and recording fees: Deed excise taxes differ depending on the sale location.
• Insurance and prepaid items: Insurance premiums and prepaid taxes influence your cash to close.

Are closing costs in Massachusetts 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. Massachusetts buyers pay an average of $15,995, or 2.44%.

Compared with nearby New England states, Massachusetts has a lower closing-cost percentage. Connecticut averages about 3.51%, Rhode Island around 3.15%, and Vermont roughly 4.31%, largely due to differences in local taxes and fees. Massachusetts’ higher home prices help keep its percentage lower, even though the actual dollar amount buyers pay may still feel high.

In general, Massachusetts closing costs are competitive with both regional and national norms. To better understand these fees before closing day, you can explore this guide on how closing works and see how transfer taxes may influence what you pay.

What do Massachusetts’s closing costs include?

Closing costs in Massachusetts consist of the fees and services needed to complete a home purchase. Some costs are tied to your mortgage, while others relate to inspections, title work, insurance, and the administrative steps required for transferring ownership. Understanding these fees helps buyers prepare for the financial side of the process.

• Lender-related fees: Application, origination, and credit check fees; some loans may also include rate-lock charges described in this guide to rate locks.
• Appraisal fees: Required to verify the home’s market value, following standard home appraisal practices.
• Home and pest inspection fees: Covers comprehensive inspections for structural issues and pests, similar to what appears on most home inspection checklists.
• Title search and insurance: Confirms clean ownership history and protects both the buyer and lender, consistent with common title insurance guidelines.
• Survey fees: Verifies property boundaries and easements when required.
• Courier fees: Covers document transport throughout the closing process.
• Recording fees: Charged by the municipality to record the deed and related documents.
• Notary fees: Ensures legal verification of required signatures.
• Prepaid items: Up-front costs for homeowners insurance, taxes, prepaid interest, and homeowners association fees (if applicable).
• Private mortgage insurance (PMI): Required when the down payment is under 20%.
• Attorney fees: Common in Massachusetts, where attorney involvement is often part of the closing process.
• Rate-lock fees: May apply if you choose to lock your interest rate early.
• Mortgage discount points: Optional payments that lower your mortgage interest rate, as explained in this overview of mortgage points.

These fees ensure the purchase is accurate, insured, and legally sound. Reviewing your Loan Estimate and Closing Disclosure will help clarify every charge.

Who pays closing costs in Massachusetts?

Both buyers and sellers in Massachusetts contribute to closing costs. While certain fees remain standard, several items can be negotiated depending on the contract, the market, and attorney guidance.

Closing costs for buyers

Buyers in Massachusetts generally pay lender- and property-related fees. These costs ensure the property is properly inspected, insured, and legally transferred. Common buyer closing costs include:

• Loan application and origination fees
• Home appraisal and inspection
• Title search and lender’s title insurance
• Prepaid expenses
• Recording and notary fees
• Attorney fees (commonly required in MA)
• Mortgage discount points

Some charges—such as lender fees, discount points, and even attorney selection—may be negotiable or vary by provider.More guidance is available in first-time home buyer expenses to save for.

Closing costs for sellers

Sellers in Massachusetts have their own closing responsibilities. Real estate commissions typically make up the largest expense, but prorated taxes, title fees, and payoff costs also contribute. Common seller closing costs 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 (common in MA closings)
• Outstanding mortgages and liens
• Seller concessions (if negotiated)

How to reduce your closing costs in Massachusetts

Some closing costs in Massachusetts — including title insurance, municipal recording fees, property taxes, and prepaid interest — are fixed. However, many others offer flexibility. With the right approach, buyers may be able to reduce what they owe at closing.

• Research home buyer assistance programs: Massachusetts offers several statewide and local initiatives that can help eligible buyers reduce upfront costs. Options like the MassHousing Down Payment Assistance Program, the ONE Mortgage program through the Massachusetts Housing Partnership, or city-level offerings such as the Boston Home Center or Worcester’s Down Payment Assistance Program can provide grants or low-interest loans that apply directly to closing expenses. Buyers in qualifying rural areas may also benefit from USDA loans, which can reduce the total cash needed at closing. These programs may provide grants or low-interest loans that can be applied toward closing expenses.
• Shop around for a lender: Different lenders charge different fees. Getting several loan estimates allows you to compare origination charges, discount points, and other costs. More information is available in this guide on choosing a mortgage lender.
• Negotiate seller concessions: In some cases, sellers may offer a credit toward your closing costs. This can happen when buyers need extra financial flexibility or when the market allows for negotiation. More detail is available in this resource on seller concessions.
• Consider a no-closing-cost mortgage: These loans reduce or eliminate upfront fees by shifting costs into the loan balance or interest rate. The mechanics are explained in this overview of no-closing-cost mortgages.

While not every cost is adjustable, reviewing which closing costs can be negotiated can help buyers identify potential savings.

FAQ on closing costs in Massachusetts

Does Massachusetts require paying for a real estate attorney?

Yes. Massachusetts is one of the states where attorney involvement is typically required during the closing process. Attorneys handle contract review, legal documents, and title-related steps. Buyers and sellers may choose their own attorney or work with one recommended by their agent. Learn more in this guide to real estate attorneys.

When do Massachusetts buyers find out their closing costs?

Buyers receive a Loan Estimate within three business days of applying, outlining projected lender fees, taxes, and insurance. A Closing Disclosure arrives at least three days before closing with the final numbers. Comparing the two documents helps ensure accuracy and transparency. More information is available in the guides on the Loan Estimate and the Closing Disclosure.

When and how will I pay my Massachusetts closing costs?

Closing costs are typically paid at the closing appointment, often via wire transfer or cashier’s check sent to the settlement attorney or title company. The Closing Disclosure provides the exact payment amount and instructions beforehand. More insight can be found in this overview of time to close on a house.

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

Closing costs in Massachusetts average about 2.44% of the home’s purchase price. Buyers often save monthly or allocate tax refunds and bonuses toward upfront expenses. Statewide options like MassHousing DPA, the ONE Mortgage program, and local programs through the Boston Home Center or Worcester DPA can also help ease upfront costs. For additional advice, visit this guide on how to save for a house.

Are Massachusetts’s closing costs deductible on my taxes?

Most closing costs, including appraisal fees, attorney charges, and title insurance, aren’t tax deductible. However, prepaid mortgage interest and property taxes can be deductible in the year of purchase. Homeowners who itemize may also qualify for ongoing deductions tied to mortgage interest and property taxes. More details appear in guides on tax-deductible closing costs and homeowner tax deductions, as well as IRS Publication 530.

The bottom line: Prepare your finances for Massachusetts closing costs

Closing costs in Massachusetts typically average about 2.44% of the home’s purchase price, covering lender fees, title services, insurance, and municipal recording charges. Buyers and sellers both contribute, though actual amounts can vary depending on location, loan specifics, and negotiations. Knowing which fees are fixed and which may be adjustable can help you plan your budget more effectively. If you’re getting ready to purchase a home in Massachusetts, now is a great time to get preapproved and begin your mortgage application.