Short answer: A buyer's closing costs fall into five buckets in every state: lender charges, title and settlement services, taxes and government fees, prepaids (such as homeowner's insurance and prepaid interest) and the initial escrow deposit. The biggest state-to-state difference is the buyer's share of transfer tax. On a $400,000 home, the typical buyer share is about $4,000 in Pennsylvania (where the local rate is 1%), $8,000 in New Castle County, Delaware and $3,640 in Cecil County, Maryland, before first-time buyer breaks. Title insurance differs too: in Pennsylvania the premium is a filed, approved rate, which works out to $2,735 for a standard owner's policy on $400,000.
I'm Brian Foraker, owner of Foraker Realty Co. We're licensed in Pennsylvania, Delaware and Maryland, and our Kennett Square headquarters is a short drive from both state lines, so I watch buyers compare these numbers every week. Last reviewed October 13, 2026. General information, not tax or legal advice; your Loan Estimate, your title company and your Closing Disclosure give the real figures for your deal.
What's included in buyer closing costs?
The federal Loan Estimate and Closing Disclosure sort costs the same way in all three states:
- Loan costs: origination charges, services you can't shop for (such as the appraisal) and services you can shop for;
- Taxes and other government fees: transfer and recordation taxes and recording fees;
- Prepaids: your homeowner's insurance premium, mortgage insurance premium, prepaid interest and property taxes;
- Initial escrow payment at closing: the deposit that starts your escrow account, if your lender requires one.
According to the CFPB, the initial escrow deposit can differ from your monthly escrow payment, and it appears in section G on page 2 of your Loan Estimate.
What's the buyer's share of transfer tax in each state?
- Pennsylvania: a 1% state tax plus a local tax, commonly 1%. Buyer and seller customarily split it, so the buyer pays about 1%. Confirm the local rate for the municipality and school district.
- Delaware (New Castle County): 4% total (2.5% state plus 1.5% county or city), typically shared equally, so the buyer pays 2%. A first-time buyer's share of the state tax drops 0.5% on the first $400,000, saving up to $2,000.
- Maryland (Cecil County): a 0.5% state transfer tax, a 0.5% county transfer tax and a recordation tax of $4.10 per $500, shared equally by default. For a qualifying first-time Maryland buyer, the state rate drops to 0.25% and, unless the contract says otherwise, the seller pays the transfer and recordation taxes.
The full rules are in Realty Transfer Tax in PA, DE and MD.
How is title insurance priced in Pennsylvania?
Pennsylvania title insurers use a rate manual from the Title Insurance Rating Bureau of Pennsylvania (TIRBOP), which is filed with and approved by the Pennsylvania Insurance Department. Under the manual in effect since August 1, 2024, the Sale Rate on an owner's policy is $569 for the first $30,000, then a per-$1,000 charge that steps down as the amount rises ($5.70 per $1,000 between $100,001 and $500,000). On $400,000 that's $2,735.
Three rules worth knowing:
- When the owner's and lender's policies are issued together, they're treated as one policy, charged at the Sale Rate on the higher amount, plus any endorsements.
- The enhanced ALTA Homeowner's Policy costs the regular charge plus 10%, or $3,008.50 on $400,000.
- If your mortgage is insured, an owner's policy must be issued unless you waive it in writing.
Delaware and Maryland don't use Pennsylvania's rating bureau, so I don't quote a premium for them here. Get a written quote. If title services are listed under "Services You Can Shop For" on your Loan Estimate, you can choose your own provider.
What does that look like on a $400,000 home?
| Pennsylvania (1% local) | New Castle County, DE | Cecil County, MD | |
|---|---|---|---|
| Buyer's typical transfer/recordation tax share | $4,000 | $8,000 | $3,640 |
| Same, first-time buyer | $4,000 (no statewide break) | $6,000 | $0 by default (seller pays) |
| Owner's title insurance | $2,735 (TIRBOP Sale Rate) | Quote from title company | Quote from title company |
Lender charges, prepaid interest, homeowner's insurance and the escrow deposit depend on your loan, your insurer, your closing date and the property's tax bill, so I'm leaving them to your Loan Estimate rather than guessing.
When do I see the final numbers?
Your lender must give you the Closing Disclosure at least three business days before closing. Compare it line by line with your Loan Estimate. A new three-business-day wait applies only if the APR rises more than 1/8 of a percentage point on a fixed-rate loan (1/4 on an adjustable), a prepayment penalty is added, or the loan product changes. Holidays can move the calendar, as we explain in the three-business-day Closing Disclosure rule.
How can I lower my closing costs?
- Compare Loan Estimates from more than one lender.
- Claim first-time buyer breaks in Delaware and Maryland, and ask about state down payment and closing cost programs; see First-time homebuyer programs in PA, DE and MD.
- Negotiate: the agreement of sale can shift costs, including who pays which tax.
- Shop the services your Loan Estimate says you can.
If you're comparing houses on both sides of a state line, we can run these numbers with you. You don't need three agents to compare three states. Start on our buying page or call (484) 406-3004.
Sources
- Consumer Financial Protection Bureau, What is a Closing Disclosure?, You'll get 3 days to review your mortgage closing documents and What is an initial escrow deposit?
- Title Insurance Rating Bureau of Pennsylvania, Rate Manual (manual effective 08/01/24, §§ 5.2, 5.9 and 5.50)
- Pennsylvania Department of Revenue, Realty Transfer Tax
- Delaware Division of Revenue, First-Time Home Buyer Tax Credit; New Castle County, Transfer Tax
- Maryland Code, Tax-Property § 13-203 and Real Property § 14-104; Department of Legislative Services, County and Local Tax Rates, FY 2026; Cecil County Circuit Court, Recording Fees and Taxes