Massachusetts Buyer Closing Costs Explained

Buying in Boston comes with plenty of moving pieces, and closing costs are one of the most overlooked. If you’re planning your budget, you deserve a clear, local picture of what you’ll pay and why. In this guide, you’ll learn what’s included in Massachusetts buyer closing costs, typical ranges for Boston and nearby MetroWest, real‑world examples by price point, and smart ways to estimate and reduce your total. Let’s dive in.

What closing costs cover

Closing costs are the one‑time expenses you pay to finalize your home purchase, separate from your down payment. They include lender fees, title and settlement services, attorney representation, government recording and municipal charges, and your upfront “prepaids” for taxes, insurance, and interest. Some costs are fixed; others vary with your purchase price, loan size, and timing.

How much to budget in Boston

As a working rule of thumb, buyers in Massachusetts often see total closing costs around 2% to 5% of the purchase price. The percentage is similar across the state, but Boston’s higher home prices translate to larger dollar amounts. Your final figure depends on lender pricing, whether you purchase both owner’s and lender’s title policies, attorney scope, and how much your lender collects for tax and insurance escrows.

Cost categories and typical ranges

Lender fees and loan costs

Your loan costs include origination and discount points, underwriting and processing, the appraisal, and smaller third‑party items.

• Origination or points: typically 0% to 1.5% of the loan amount
• Appraisal: often $500 to $1,200 in Greater Boston, with complex condos or multifamily on the higher end
• Credit report, flood cert, and misc. fees: usually $50 to $300 total

In Boston’s high‑cost markets, appraisal and condo documentation reviews can push the appraisal line toward the top of the range.

Title search, title insurance, and settlement

Title and settlement services cover the title exam, the closing agent’s work, and title insurance policies and endorsements.

• Title search, exam, and settlement fee: often $300 to $1,200 depending on provider and complexity
• Title insurance premium: a one‑time cost typically in the ballpark of 0.25% to 1.25% of the purchase price for combined policies, with many Greater Boston purchases falling around 0.4% to 0.9%

Massachusetts custom varies on who pays the owner’s title policy. In some Boston transactions the seller pays; in others the buyer does. Buyers typically pay the lender’s policy. Confirm who pays what in your purchase and sale agreement.

Attorney representation

In Massachusetts, it’s common for both buyer and seller to have attorneys. Your attorney will review documents, coordinate title, address issues, and attend the closing.

• Typical buyer attorney fee: roughly $800 to $2,500 as a flat fee, depending on scope and whether the attorney handles escrow and title work

Some lenders also require legal opinions on title matters, which your attorney facilitates.

Recording and municipal charges

These are government and municipal fees tied to recording your deed and mortgage and obtaining local certificates.

• Recording package: often $50 to $300, depending on the number and type of documents filed with the registry
• Municipal or association certificates: commonly $100 to $400, such as water/sewer certificates or condo compliance letters

Recording fees vary by county registry. Boston closings record in Suffolk County; MetroWest areas commonly record in Middlesex County.

Prepaids and escrow reserves

Prepaids are not “fees,” but they often make up the largest share of your closing cash.

• Prepaid interest: daily interest from your closing date to your first mortgage payment; the dollar amount depends on rate, loan size, and your closing date
• Property tax escrow: many lenders collect 2 to 6 months upfront; the total depends on the home’s assessed value and your municipality’s tax rate
• Homeowner’s insurance: often one year due at or before closing; many Greater Boston homes range from about $700 to $2,500+ per year depending on property type and coverage

Because taxes and insurance vary by property and town, this category can swing the most.

Other common buyer costs

• Private Mortgage Insurance (PMI): required with down payments under 20%; can be monthly or a single upfront premium
• Condo or HOA transfer and estoppel fees: often $100 to $400
• Survey, if required: about $300 to $1,500+
• Wire and courier fees: typically $25 to $100

Boston vs. MetroWest: what actually changes

The percentage range is similar, but the dollars change with price. A higher Boston purchase price means larger title premiums in absolute terms and bigger tax and insurance escrows. Condo purchases can add association paperwork fees and more extensive document review. Registries also have small differences in recording practices. Your attorney or closing agent can quote exact recording fees for your county.

Example budgets for Greater Boston buyers

These scenarios show how the 2% to 5% guideline translates into dollars. They are estimates for planning only. Your final figures appear on your Closing Disclosure and settlement statement.

Example A: Boston condo purchase at $600,000

• 2% estimate: $12,000
• 3% estimate: $18,000
• Sample breakdown around 3%:
  • Lender fees and appraisal: about $4,000
  • Title insurance and settlement: about $3,000
  • Attorney: about $1,200
  • Prepaids and escrow: about $7,800
  • Recording and municipal: about $800

Example B: MetroWest single‑family at $900,000

• 2% estimate: $18,000
• 3% estimate: $27,000
• 4% estimate: $36,000

Higher price raises the dollar amount for title premiums and prepaids, even if the percentage stays similar.

Example C: High‑end Boston condo at $1,500,000

• 2% estimate: $30,000
• 3% estimate: $45,000
• 4% estimate: $60,000

At this price point, the title premium, insurance, and tax escrows often become the largest line items.

How to estimate your number with confidence

Use these steps to replace guesswork with a near‑final figure early in the process.

1) Get a Loan Estimate from your lender

After you apply, your lender must provide a Loan Estimate within three business days. This shows your projected lender fees, prepaids, and escrows. Compare estimates from multiple lenders to see how origination, points, and credits affect your total.

2) Request a title and closing quote

Ask a local title company or your attorney for a written quote that includes the title premium, settlement fee, and expected recording and municipal charges. Title premium schedules are based on purchase price brackets, so a quote is the best way to budget accurately.

3) Clarify who pays the owner’s policy

Custom in Greater Boston can vary by neighborhood and deal. Decide during your offer and purchase and sale negotiations whether the seller or buyer pays the owner’s title policy, and capture it in writing.

4) Build a cushion for prepaids

Plan for taxes, insurance, and prepaid interest to be a large share of your cash to close. Lenders often collect 2 to 6 months of property tax and several months of insurance. Your closing date also affects prepaid interest, so ask for updated daily figures as you approach closing.

5) Use timing to your advantage

Closing late in the month usually reduces prepaid interest. Depending on your municipality’s tax cycle, proration timing can raise or lower how much tax you need to bring to the table. Confirm proration details with your lender and attorney.

6) Explore credits and concessions

• Seller credits: You can negotiate a seller credit to offset your closing costs. Success depends on market conditions and contract terms.
• Lender credits: Many lenders offer credits in exchange for a slightly higher interest rate. Compare the short‑ and long‑term trade‑offs before deciding.

7) Coordinate with your team

You can shop lenders and some closing services, but make sure your purchase agreement and condo association requirements are followed. Your attorney and agent will align the details.

Quick checklist for Boston buyers

Use this list to gather the inputs that drive your closing‑cost estimate.

• Signed purchase and sale agreement with who‑pays‑what spelled out
• Loan program and down payment percentage
• Property type: condo, single‑family, or multifamily
• County and registry for recording fees (Suffolk for most Boston addresses)
• Condo or HOA estoppel and transfer fee quotes, if applicable
• Homeowner’s insurance quote
• Recent property tax bill or assessed value for tax escrow estimates
• Attorney and title fee estimates plus a title insurance premium quote

The bottom line for Boston buyers

If you budget 2% to 5% of the purchase price for closing costs, you’ll be in a realistic range for Boston and nearby MetroWest. The biggest swings usually come from prepaids and escrow deposits, followed by title premiums and lender pricing. With a strong team and early quotes, you can dial in your number and avoid surprises.

If you want a clear, property‑specific estimate and a plan to minimize your cash to close, schedule a conversation with Jamie Grossman. With three decades of Greater Boston and MetroWest experience, Jamie coordinates your lender, attorney, and title quotes so you can move forward with confidence.

FAQs

What are typical buyer closing costs in Boston?

• Most buyers should budget about 2% to 5% of the purchase price for closing costs, with higher Boston prices translating into larger dollar amounts.

What fees make up closing costs in Massachusetts?

• Common line items include lender fees and appraisal, title search and title insurance, attorney fees, recording and municipal charges, and prepaids for taxes, insurance, and interest.

Who pays for owner’s title insurance in Massachusetts?

• It depends on local custom and your contract; in some Boston deals the seller pays, in others the buyer does, so confirm in negotiations.

Are seller credits toward buyer closing costs negotiable?

• Yes, you can negotiate a seller credit to offset closing costs, though acceptance depends on market conditions and the specifics of your offer.

When will I know my final cash to close?

• You receive a Closing Disclosure at least three business days before closing, and your settlement statement at closing, which together show the exact cash to close.