Feeling unsure about how much cash you need to close on a home in Arlington? You are not alone. Closing costs can be confusing, especially when fees vary by lender, property type, and timing. In this guide, you will learn what buyer closing costs include in Massachusetts, what is typical for Arlington, and smart ways to lower what you bring to the table. Let’s dive in.
What closing costs include in Massachusetts
Closing costs are the one-time expenses you pay at settlement, separate from your down payment. In Massachusetts, buyers typically pay lender fees, appraisal, title services and insurance, attorney fees, government recording fees, and prepaids like taxes and insurance.
You will see these summarized on your lender’s Loan Estimate and final Closing Disclosure. The Consumer Financial Protection Bureau explains both documents clearly in its guides to the Loan Estimate and the Closing Disclosure.
How much you will pay in Arlington
As a quick rule of thumb, plan for about 2% to 5% of the purchase price for buyer closing costs, not including your down payment. Where you land in that range depends on your loan type, lender fees, title and attorney charges, and the size of your escrow deposits for taxes and insurance.
- Low estimate for efficient files: about 2% of price.
- Typical range for many buyers: about 2.5% to 4%.
- Higher estimate when escrows or points are larger: 4% to 5% or more.
Because Arlington includes both condos and single-family homes across a wide price range, use representative price points to budget. A $500,000 condo and a $1,200,000 single-family offer useful comparisons.
Line items you can expect
Here are the most common buyer costs in Middlesex County and how they are calculated.
Loan-related fees
- Origination, processing, underwriting: 0% to 1% of the loan amount, or a flat fee.
- Credit report and application: usually modest flat fees.
- Appraisal: typically $400 to $1,000 based on property type.
- Rate lock or loan program fees: $200 to $1,000 depending on lender.
- Prepaid interest: daily interest from closing to your first payment date. Timing within the month matters.
- Upfront mortgage insurance (if applicable): varies by program.
Title and closing services
- Title search and title insurance: one-time premiums that often total in the hundreds to a few thousand dollars depending on price and whether you buy both owner’s and lender’s policies.
- Settlement or closing fee: commonly $200 to $600 when charged.
Attorney representation
- In Massachusetts it is common for buyers to retain an attorney. Expect $800 to $2,500 or more depending on the firm and complexity.
Government recording
- Recording the deed and mortgage at the Middlesex County Registry of Deeds typically totals a few hundred dollars based on document count and pages. For exact charges, review the Middlesex South Registry of Deeds fee schedule.
Prepaids and escrow deposits
- Homeowner’s insurance: often the first year is paid at closing.
- Property taxes: you reimburse the seller for prepaid taxes and usually fund an escrow account with 1 to 3 months of taxes and insurance, depending on the lender.
Optional or situational items
- Discount points to lower your rate: each point equals 1% of the loan amount.
- Condo or HOA transfer and documentation fees: often a few hundred dollars for condominiums.
- Surveys or specialized inspections if required.
Arlington and Middlesex County specifics
- Closings record at the Middlesex County Registry of Deeds. Recording fees are modest, but exact totals depend on documents and pages.
- In Massachusetts, buyers commonly pay lender-required items and often purchase the owner’s title policy, but practices vary by deal and are negotiable in the offer.
- Many buyers hire a closing attorney for review and signing. This is a standard line item in Arlington transactions.
- Condo buyers should budget for association transfer or certification fees and confirm master insurance details early.
Two real-world examples
These illustrations show how totals can differ by price point and escrow needs. Your exact numbers will come from your lender and closing team.
Example A: $500,000 condo (80% loan-to-value)
- Lender fees and appraisal: about $1,500
- Title search and title insurance: about $1,500
- Buyer’s attorney fee: about $1,500
- Recording fees: about $200
- Homeowner’s insurance, first year: about $900
- Property tax proration and initial escrow: about $2,000
- Prepaid interest: about $700
- Condo transfer/docs: about $300
- Optional points: 1 point would be about $4,000
Estimated total without points: around $8,600, or about 1.7% of price. With fuller escrows and modestly higher title and legal charges, a 2.5% planning number, about $12,500, is reasonable.
Example B: $1,200,000 single-family (80% loan-to-value)
- Lender fees and appraisal: about $2,500
- Title search and owner/lender title policies: about $3,500
- Buyer’s attorney fee: about $2,000
- Recording and county fees: about $400
- Homeowner’s insurance, first year: about $1,500
- Property tax proration and escrow: about $6,000
- Prepaid interest: about $2,500
- Miscellaneous (survey or septic items if required): about $1,000
- Optional points: 1 point would be about $9,600
Estimated total without points: around $19,400, or about 1.6% of price. With more conservative escrow funding and higher service fees, budgeting 3% to 4% ($36,000 to $48,000) can be prudent.
What is negotiable
Several costs can be negotiated or offset. Your strategy depends on market conditions and loan rules.
- Seller credits: Ask for a closing-cost credit in your offer. Loan programs limit how much a seller can contribute, so confirm with your lender.
- Title and attorney allocations: Who pays for the owner’s title policy or certain legal fees can be negotiated in the purchase agreement.
- Lender fees and points: Shop more than one lender and compare Loan Estimates to find lower origination or better rate options.
- Escrow size: Lenders set escrow requirements. There is limited flexibility, but different lenders may have different policies.
Ways to lower cash at closing
- Compare lenders side by side using the standardized Loan Estimate. Small changes in fees and points can save thousands.
- Consider timing. Closing near the end of the month can reduce prepaid interest days.
- Request a seller credit toward closing costs if the market allows.
- Explore lender-paid options. Some lenders offer rate choices that include credits toward closing costs in exchange for a slightly higher interest rate.
- Discuss title-related costs with your attorney. You may be able to split or reassign certain items by agreement.
Timeline and documents you will see
- After you submit a complete loan application, your lender must deliver a Loan Estimate within three business days. The CFPB’s Loan Estimate guide explains each section so you can compare offers.
- At least three business days before closing, you will receive a final Closing Disclosure. Review it line by line and ask questions. The CFPB’s Closing Disclosure guide is a helpful reference.
- Your attorney and lender will coordinate final figures, including escrow deposits for taxes and insurance, and confirm wire instructions and certified funds needed for closing.
Next steps for Arlington buyers
- Set a budget that includes both your down payment and 2% to 5% for closing costs.
- Ask your lender for a written Loan Estimate early and compare at least two offers.
- Confirm local items with your attorney or title company, including who will purchase the owner’s title policy and any condo-related fees.
- Check the Middlesex South Registry of Deeds fee schedule for current recording charges and bring questions to your closing team.
When you are ready to run the numbers for a specific Arlington home, connect with a local advisor who has guided many buyers through the process. If you want a clear plan, a line-by-line estimate, and negotiation strategies tailored to your situation, reach out to RE/MAX Real Estate Center. Work with a local expert.
FAQs
How much are buyer closing costs in Arlington, MA?
- Most buyers can plan for about 2% to 5% of the purchase price, with the exact amount driven by lender fees, title and attorney charges, and prepaid escrows for taxes and insurance.
When will I know my exact closing costs before buying?
- Your lender must provide a Loan Estimate within three business days of application and a final Closing Disclosure at least three business days before closing, listing expected costs.
Who usually pays for title insurance in Massachusetts purchases?
- Practices vary. Buyers often purchase the owner’s policy in Massachusetts, but it can be negotiated in your offer. Confirm with your attorney and the purchase agreement.
Can I roll some closing costs into my mortgage?
- Some fees can be financed or offset with lender credits, depending on the loan program. This can reduce cash at closing but may raise your rate or total interest paid.
Why do escrow deposits make my cash due seem higher?
- Lenders collect several months of property taxes and insurance upfront to fund your escrow account. These reserves are not fees but can increase your total cash due at closing.
