While many buyers focus primarily on the price of the home and the funds needed for a down payment, closing costs are also part of the equation.

Closing costs vary by state and are frequently estimated to average between 2% to 6% of the amount you’re borrowing. Naturally, as home prices rise, so do closing costs.

For example, if you borrow $400,000, your closing costs could range from $8,000 to $24,000. If you borrow $500,000, your closing costs could range from $10,000 to $30,000.

Closing costs include fees and taxes that are required to settle a real estate transaction, such as lender and owner title insurance policies, appraisal fees, settlement fees, recording fees, land surveys and transfer taxes, according to ClosingCorp, a provider of residential real estate closing cost data and technology.

Rising home prices contributed to the increase in closing costs during the first half of 2021, according to a new report by ClosingCorp. Nationally, the average closing costs for a home rose to $6,837, up 12.3% compared with the same period in 2020. Excluding taxes, average closing costs were up 10.5% during that same period to an average of $3,836.

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ClosingCorp’s data for the first half of 2021 found that closing costs range from less than 1% to 5.68% of the sales price of a home, depending on the jurisdiction. While actual closing costs were up, closing costs as a percentage of the purchase price declined in the first half of 2021 compared with the first half of 2020, according to ClosingCorp.

“Although the average home price increased by nearly $45,000, the closing costs, excluding taxes, on that property only increased by $400,” Bob Jennings, CEO of ClosingCorp, said in a statement. “In fact, closing costs as a percentage of purchase prices declined this year, going from 1.06% of the transaction in 2020 down to 1.03%. So, in addition to keeping up with high demand, the mortgage industry is doing a good job in holding down the costs it can control.”

The states (and Washington, D.C.) with the highest average closing costs, including taxes, during the first half of 2021 were:

Washington, D.C.: $30,352

Delaware: $17,831

New York: $17,582

Washington state: $13,909

Maryland: $12,056

The states with the lowest closing costs, including taxes, during the first half of 2021 were:

Missouri: $2,102

Indiana: $2,193

North Dakota: $2,321

Kentucky: $2,355

Wyoming: $2,509