Massachusetts closing costs for buyers and sellers
What each closing cost is, who pays it in Massachusetts, and how to get your real number early.
Buyers commonly pay about 2% to 5% of the price in closing costs: lender fees, the appraisal, title insurance, attorney fees, recording fees ($155 for the deed, $205 for the mortgage) and prepaid taxes and insurance. Sellers pay the deed excise ($4.56 per $1,000 in most counties) plus their attorney, commission and any payoff.
Buyer closing costs
| Cost | What it is | Notes |
|---|---|---|
| Lender fees | Origination, underwriting, processing, and any points you buy | Compare Loan Estimates from more than one lender |
| Appraisal | The lender's check on value | Usually paid early, before the commitment |
| Lender's attorney | Runs the closing, title exam and documents for the lender | Buyer typically pays |
| Your own attorney | Reviews the P&S and represents you | Optional but common. Sometimes the same firm as the lender's attorney. |
| Lender's title insurance | Protects the lender against title problems | Required with a mortgage. One-time premium. |
| Owner's title insurance | Protects you | Optional. One-time premium. Widely recommended. |
| Recording fees | Registry of Deeds fees to record your deed and mortgage | $155 per deed, $205 per mortgage |
| Prepaid interest | Interest from closing to the end of the month | Closing later in the month lowers this |
| Escrow deposits | Months of property tax and homeowners insurance collected up front | Varies with your town's tax bill |
| Tax and condo fee adjustments | Repaying the seller for amounts they prepaid | Calculated by the closing attorney |
| Homeowners insurance | First year's premium | Required by the lender before closing |
| Home inspection and other tests | Inspection, radon, pests, lead, septic review | Paid before closing, not on the settlement statement |
Seller closing costs
| Cost | Notes |
|---|---|
| Deed excise (transfer tax) | $4.56 per $1,000 of price; $6.48 in Barnstable County |
| Commission | Negotiable, set in the listing agreement |
| Seller's attorney | Deed, payoff, closing documents |
| Mortgage payoff and discharge | Balance plus interest to the payoff date |
| Smoke and CO certificate | From the local fire department |
| Title 5 inspection | Homes on septic only |
| Condo 6(d) certificate | Condos only |
For a full seller breakdown and a calculator, see what it costs to sell.
How to get your real number
- Loan Estimate. Your lender must send this standard form within three business days of your application. It lists estimated closing costs line by line.
- Closing Disclosure. You receive the final version at least three business days before closing. Compare it with the Loan Estimate and ask about anything that changed.
- Ask for the settlement statement early. Your attorney can share a draft a few days ahead so there are no surprises on the cash you need to bring.
Ways to lower closing costs
- Compare at least two lenders on the same day with the same loan terms.
- Negotiate a seller credit, within your loan's limits.
- Look at first-time buyer programs that cover closing costs.
- Pick a closing date near the end of the month to reduce prepaid interest.
Protect your wire
Wire fraud targets closings. Before sending money, call your attorney at a phone number you already have, not one in an email, to confirm the instructions. We will never email you wiring instructions.
Sources
Questions this page answers
How much are closing costs for a buyer in Massachusetts?
They are commonly estimated at about 2% to 5% of the purchase price, depending on your loan, the price, and how much you prepay for taxes and insurance. Your lender's Loan Estimate, which you receive within three business days of applying, gives your actual figures.
Who pays the transfer tax in Massachusetts, the buyer or the seller?
The seller. Massachusetts law puts the deed excise on the person who signs the deed. The buyer pays the fees to record the deed and mortgage.
Is title insurance required in Massachusetts?
If you have a mortgage, the lender will require a lender's title insurance policy, which the buyer pays for. An owner's policy, which protects you rather than the lender, is optional, paid once at closing, and something most attorneys recommend.
Can the seller pay my closing costs?
Yes, if you negotiate a seller credit and your loan allows it. Loan programs cap how much the seller can contribute, so check with your lender before writing it into an offer.
Why do I pay property taxes at closing?
Lenders usually set up an escrow account and collect several months of taxes and insurance up front. You may also reimburse the seller for taxes they prepaid for days after closing.
How much does it cost to record a deed in Massachusetts?
The registry fee is $155 to record a deed and $205 to record a mortgage, including surcharges, per the state Registry of Deeds fee schedule.