Costs & insurance
Closing costs
The one-time fees due when a mortgage closes — origination, appraisal, title, recording, and prepaid escrow items — typically 2–4% of the purchase price for a Michigan buyer.
What does closing costs mean?
Closing costs settle the mortgage and are separate from your down payment, falling on both sides of the table. A Michigan buyer typically pays origination, appraisal, lender's title insurance, recording, and prepaid escrow items; the seller usually covers the state and county transfer tax and the owner's title policy. The one big variable is the escrow prepaid, which swings with the county's property-tax rate and the month you close. Budget roughly 2.5% of the price plus prepaids on the buyer side, and estimate them before you make an offer.
Common questions
How much are closing costs in Michigan?
For buyers, roughly 2–4% of the price — about $5,700–$11,400 on the median home — plus escrow prepaids. Sellers pay the transfer tax and owner's title policy.
Who pays closing costs, buyer or seller?
Both. Buyers cover origination, appraisal, title, and prepaids; sellers by Michigan custom pay the $8.60-per-$1,000 transfer tax and the owner's title insurance.
Can closing costs be reduced?
Yes — seller concessions, lender credits for a slightly higher rate, and the title reissue rate on refinances all cut the cash you bring to the table.
Related terms