Average closing costs in Montana

Closing costs play an important role in Montana home purchases, covering the services and paperwork needed to complete the sale. Both buyers and sellers contribute to these expenses, though the totals can vary depending on the home’s price, the loan structure, and local requirements. Understanding what these costs include helps you budget properly and reduces stress as you approach the final steps of the homebuying process.

Key takeaways:

• Closing costs in Montana average about 2.40% of the home’s purchase price for buyers.
• Common buyer fees include loan origination charges, inspections, appraisals, and title insurance.
• Sellers usually pay for real estate agent commissions (which are fully negotiable), prorated taxes, title fees, and deed preparation.
• Some fees — particularly lender charges, title services, and third-party costs — may offer opportunities for comparison or negotiation.

How much are closing costs in Montana?

With a median home sale price around $543,900, a buyer in Montana can expect to pay roughly $13,047 in closing costs, or about 2.40% of the home’s purchase price. These totals include fees such as lender charges, title insurance, appraisal costs, escrow services, and taxes — all of which buyers and sellers contribute to at the end of the transaction.

Closing costs can vary significantly across Montana. Mountain towns like Bozeman, Missoula, or Kalispell may have higher totals due to elevated insurance rates or property values, while more rural areas may see lower averages. Buyers should account for these regional differences when planning their upfront expenses.

What affects closing costs in Montana?

Several variables can change your closing-cost total:

• Property location: Insurance rates, local taxes, and recording fees differ between rural areas and larger cities.
• Home price: Fees tied to sale price increase as the home’s price rises.
• Loan type and down payment: FHA, VA, USDA, and conventional loans all have distinct cost structures.
• Title and escrow fees: Vary depending on the provider and the title search requirements.
• Taxes and recording fees: Transfer taxes, prorated property taxes, and document-recording costs depend on the county.
• Insurance and prepaid items: Includes upfront homeowners insurance, prepaid interest, and escrowed property taxes.

Understanding these factors gives buyers a clearer picture of their cash to close and how the home’s value plays a role in total estimated costs.

Are closing costs in Montana above average?

Montana’s closing costs average 2.40% of the home’s purchase price. 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. Montana buyers often pay a smaller percentage despite higher property values.

Compared with nearby Western states, Montana’s closing costs tend to fall on the lower side. Idaho averages about 2.54%, Washington around 2.05%, and Oregon roughly 2.83%, all landing below Montana’s percentage. Wyoming is higher at 4.29%, placing it closer to the upper end of the regional range. Montana’s lower percentage is often influenced by its higher home prices, which can make the cost-to-price ratio smaller even if the total dollar amount feels substantial.

Overall, Montana buyers benefit from closing costs that sit below national averages. Those interested in understanding each fee may find it helpful to review what to expect when closing on a house and how transfer taxes can affect final totals.

What do Montana’s closing costs include?

Closing costs in Montana include the various lender, inspection, title, insurance, and administrative fees required to finalize a home purchase. Some charges relate to obtaining the mortgage, while others support the legal transfer of property. Understanding these expenses ahead of time can help you prepare for closing with confidence.

• Lender-related fees: Charges for the loan application, origination, and credit check; rate-lock fees may apply depending on the loan.
• Appraisal fees: Paid to verify the home’s current market value.
• Home and pest inspection fees: Covers evaluations of the property’s condition and potential pest issues.
• Title search and insurance: Confirms a clean ownership history and protects against liens or title disputes.
• Survey fees: Often required to document boundaries and easements, especially for rural or large-acreage properties.
• Courier and recording fees: Covers the cost of handling closing documents and recording them with the county.
• Notary fees: Ensures that closing signatures are legally verified.
• Prepaid items: Includes upfront payments for insurance, property taxes, prepaid interest, and any homeowners insurance obligations.
• Private mortgage insurance (PMI): Required when the buyer puts less than 20% down.
• Attorney fees: Paid if an attorney is hired for review or representation.
• Mortgage discount points: Optional upfront payments that reduce the mortgage interest rate.

These fees help ensure that the purchase is legally sound and accurately recorded. Your Loan Estimate and Closing Disclosure provide a detailed breakdown of what to expect.

Who pays closing costs in Montana?

In Montana, both buyers and sellers contribute to closing costs. While there are common responsibilities for each party, some fees may be negotiable depending on the contract and local market conditions.

Closing costs for buyers

Buyers typically cover most mortgage-related and property-related fees. These costs help confirm the home’s value, condition, and title status, ensuring a secure transfer. 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 (if used)
• Mortgage discount points

These expenses help protect both the lender and the buyer and ensure the transaction is properly documented. Budgeting early can help first-time and returning buyers prepare. For more guidance on preparing for up-front home buying expenses, check out first-time home buyer expenses to save for.

Closing costs for sellers

Sellers in Montana also face closing costs, many of which overlap with buyer-related fees. Commission costs tend to be the largest seller expense — and are fully negotiable. 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 (if used)
• Outstanding mortgages and liens
• Seller concessions

How to reduce your closing costs in Montana

Like many states, Montana has a mix of fixed closing costs — including title insurance, recording charges, property taxes, and prepaid interest — and other fees that buyers may be able to negotiate or reduce.

• Research home buyer assistance programs: Montana offers programs through Montana Housing, including Regular Bond loans and the MBOI Down Payment Assistance Program, which can help eligible buyers with down payment and closing cost support. Many rural areas across Montana also qualify for USDA loans, which can significantly lower upfront cash requirements.
• Shop around for a lender: Lenders may charge different origination fees or offer varied loan terms. Comparing multiple loan estimates can help you find lower-cost options. More guidance appears in how to choose a mortgage lender.
• Negotiate seller concessions: Sellers in Montana may agree to contribute toward a buyer’s closing costs, depending on market conditions and the strength of the offer.
• Consider a no-closing-cost mortgage: Some lenders allow buyers to reduce immediate out-of-pocket expenses by folding closing costs into the loan amount or opting for a slightly higher rate. 

Since only some fees can be adjusted, it’s helpful to understand which closing costs are negotiable so you can focus your efforts where it matters.

FAQ on closing costs in Montana

Does Montana require paying for a real estate attorney?

Montana does not require a real estate attorney for standard real estate closings. Title companies typically handle the settlement process, though some buyers prefer to involve an attorney for added peace of mind.

When do Montana buyers find out their closing costs?

Buyers receive estimated closing costs shortly after applying for their mortgage, delivered through a Loan Estimate within three business days. Final closing numbers arrive in a Closing Disclosure no later than three days before settlement. 

When and how will I pay my Montana closing costs?

Closing costs are typically paid at closing via wire transfer or cashier’s check to the settlement or title company. Your final Closing Disclosure includes exact payment instructions and total amounts due. Learn more about what to expect when it’s time to close on a house.

How can I save up for Montana closing costs?

With closing costs averaging around 2.40% of the home’s purchase price, saving gradually through monthly contributions and exploring available assistance programs can help lower upfront expenses.  For more tips, see how to save for a house.

Are Montana closing costs deductible on my taxes?

Most closing costs aren’t deductible, but certain items—like prepaid mortgage interest and property taxes—may qualify depending on your tax situation. Homeowners who itemize may benefit further. Learn more in are closing costs tax deductible and tax deductions for homeowners, or refer to IRS Publication 530 and Tax Benefits for Homeowners.

The bottom line: Prepare your finances for Montana closing costs

Closing costs in Montana tend to average about 2.40% of the home’s purchase price, covering everything from lender and title fees to insurance, taxes, and recording charges. Both buyers and sellers play a role in paying these expenses, though totals vary based on location, loan type, and individual negotiations. Understanding the typical fees you’ll encounter — and starting to save early — can make the process smoother and more predictable. If you’re planning to buy a home in Montana, consider getting preapproved so you can begin your mortgage application with confidence.