What are closing costs, and how much are they in 2026?
Topics covered:
What are closing costs?
Overview of the ALTA Settlement Statement
Buyer’s closing cost
Seller’s closing cost
When you buy or sell a home in Massachusetts, the purchase price isn’t the final amount that you pay or gain. Every real estate transaction includes a set of fees known as closing costs - the required expenses needed to finalize the deal, transfer ownership, and record everything with the state. Buyers and sellers both pay closing costs, but what they owe and how much they owe is very different.
1. What are closing costs?
The closing is the final step of a real estate transaction. It’s the day that documents are signed, money is wired, and ownership officially transfers. Closing costs are all the additional charges tied to the transaction beyond the agreed-upon sales price. These include agent commissions, lender fees, attorney fees, title fees, required escrows, etc.
For sellers, closing costs are typically predictable.
For buyers, especially those financing with a mortgage, costs vary widely depending on the lender, loan type, and timing.
The federal regulations below are in place to give parties an estimate, but actual numbers can still shift – and the CD arrives very close to the day of closing, making changes harder to act on.
Loan Estimate (LE): Issued within 3 business days of applying for a mortgage
Closing Disclosure (CD): Issued at least 3 business days before closing
This guide bridges that gap. It itemizes the typical closing costs in MA, what they’re for, and which ones you can expect every time. While exact figures vary, understanding the structure will get you very close to predicting your actual costs.
2. Overview of the ALTA Settlement Statement
The ALTA Settlement Statement, widely known as “the ALTA”, is a standardized document that itemizes all fees, charges, and credits for the parties. It’s akin to a receipt; one in which both Buyer and Seller sign to affirm the accounts.
Here’s how it looks:
3. Buyer closing Costs in Massachusetts
Buyer closing costs appear in the Debit column of the ALTA. Below is a breakdown of common buyer costs in Massachusetts, grouped by category.
Prorations/Adjustments
#5 City/Town taxes
Taxes are assessed by the quarter per the schedule below.
Q1: 1 July 2021 - 30 Sept 2021.
Q2: 1 Oct 2021 - 31 Dec 2021.
Q3: 1 Jan 2022 - 31 Mar 2022.
Q4: 1 Apr 2022 - 30 June 2022.
If the Seller of the property has paid taxes for the quarter in which the Closing occurs, the Buyer would pay a prorated share of that quarter’s taxes. i.e., If Closing is on 8 Jan, you would be responsible for prorated taxes from 8 Jan - 31 March.
#6 HOA/Condo fee
If applicable, proration would be from the date of Closing to the date on which the Seller has paid fees. In a condo with regular monthly fees, that would be, e.g., 8 Jan (day of closing) - 31 Jan.
Loan-related chargers (for buyers who require financing)
These vary by lender. When comparing lenders, ask for estimated totals for each of the following:
#7 Origination Fee
The lender’s charge for issuing the loan. Amount is often based on the size of the loan.
#8 Prepaid Interest from (closing date) to (date)
Applicable if you’re not closing on the last day of the month. You’d pay a prorated share of interest from the date of Closing to the end of the month.
#9 Appraisal Fee
The lender would send an independent 3rd party appraiser to appraise the value of the property.
$575 - $975
#10 Credit Report Fee
Charge to pull a credit report.
$90 - $280
#11 Flood Certification Fee
The lender would have a 3rd party company provide a Flood Certificate that determines whether or not your property is in a flood zone.
$5 - $15.
#12 Homeowner's Insurance Premium
Lenders would require a year’s premium to be paid in advance.
Amount varies by insurer.
#13 Points
Known as Mortgage Points or Discount Points. These are fees that a buyer pays a Lender in exchange for a reduced interest rate. 1-point equals 1% of the loan amount. Check if your quoted rate is contingent upon points paid.
#14 Tax Service Fee
The fee that the lender pays a 3rd party to verify that there are no outstanding tax bills.
$70 - $85.
#15 Other Fees
May include underwriting, processing, verification, compliance, or MERS registration fees (varies by lender).
Impounds
An impound account is an escrow account that is set up by the Lender to pay property-related expenses. A portion of your monthly mortgage payment contributes to this account and is used by the Lender to make necessary payments.
#16 Homeowner’s Insurance
Typically, 2–3 months of premiums. Yes, on top of #12, where a year’s premium is collected, these additional months’ payment also go to escrow.
Buyers making less than 20% down payment are almost certainly required by the Lender to escrow insurance. The exception: purchasing a Condo. Some Lenders may waive this requirement if the Master Insurance is deemed to have sufficient coverage.
#17 Property Taxes
Typically, 2–3 months of property taxes are collected upfront to establish your escrow account. This is in addition to #5, where you pay the prorated share of the tax quarter.
Note: If you plan to close in the last month of the fiscal quarter (September, December, March, or June), in addition to the prorated property taxes for that quarter itemized in #5, you may also be required to pay taxes for the upcoming quarter.
Example: If you close on March 1, you would see:
March 1-31: Prorations according to #5, plus
April 1 - June 30: Applicable taxes for the quarter
Title & Attorney Charges
#18 Title - Settlement Agent Fee/Closing Attorney Fee
In the majority of circumstances, the Buyer’s Attorney would also represent the Lender as the Settlement Agent.
$700 - $1,250
#19 Owner's Title Insurance (optional but highly recommended)
Protects your ownership rights. Premium is based on the purchase value of the property.
#20 Title - Lender's Title Insurance
Required by the lender. Premium is based on the loan amount.
#21 Title Search
Examines the property’s ownership history.
$150 - $350
#22 Town Municipal Lien Certificate (MLC)
A legal document that lists all taxes, assessments, water, and sewer charges owed to the town on a parcel.
$25 - $100
#23 Wire Fees
$50 - $150
#24 Survey/Plot Plan
Typically required for single-family homes.
$125 - $175
#25 Others
Like #15, here’s where you could ask your attorney if there would be other line items. Could include document prep, closing protection letters, or homestead preparation.
Government Recording Fees
#28 - #31: Set by the MA Registry of Deeds
Deed: $155
Mortgage: $205
Municipal Lien Certificate (MLC): $80
Declaration of Homestead: $35
Miscellaneous
This is where other monetary terms of the contract are reflected.
#38 Buyer Attorney fees
Some law firms charge the Settlement Agent’s fee and a separate Buyer Attorney’s fee. Other times, there are Buyers who elect to use different attorneys - one for the Closing and another for the buyer’s representation.
$250 - $900
4. Seller Closing Costs in Massachusetts
Seller closing costs appear in the Debit column of the ALTA as well, with notably fewer items as compared to the Buyer’s list.
Financial
#4 Seller Credit - Closing Costs, Prepaids & Expenses
Any amount of credit to the Buyer agreed to during the transaction (e.g., inspection repairs or concessions).
Commission
#26 Real Estate Commission to Seller Agent
2%–3% of the (typically gross) sale price
#27 Real Estate Commission to Buyer Agent
Negotiable, though in MA, this is typically paid by the Seller.
2%–3% of the (typically gross) sale price.
Government Recording and Transfer Charges
#32 Recording 6D, Trustee Cert
Applicable if you’re selling a condo. Verifies that all condo fees have been paid.
$115
#33 Tax stamps to the Commonwealth of Massachusetts
All MA counties, with the exception of Barnstable County: $2.28 per $500 of sale price, rounded up.
Barnstable County: $3.24 per $500
Miscellaneous
#35 Final Water/Sewer Reading, Oil Adjustments, etc
Calculated up to the closing or occupancy date.
#36 Wire Fees
$50 - $150
#37 Seller Attorney Fees
Enquire about fees prior to engagement.
$1,250 - $1,875
