CLOSING
Costs in Utah
Explained.
2 – 4%Buyer closing costs
6 – 9%Seller closing costs
$0Surprises — if you prepare
Every fee you will encounter at a Northern Utah closing — explained in plain English. What it is, who pays it, and the exact dollar range to expect. No industry jargon. No surprises at the closing table.
Buyer Closing Costs
Every Fee a Buyer Pays
at a Northern Utah Closing
Northern Utah buyers typically pay 2-4% of the purchase price in closing costs — in addition to their down payment. On a $450,000 home that is $9,000–$18,000. The exact amount depends on your loan type, lender, title company, and the closing date within the month.
| Fee | Paid To | What It Is | Typical Range |
|---|---|---|---|
| Lender Fees | |||
| Loan Origination Fee | Lender | The lender's fee for processing and underwriting your loan. Varies significantly between lenders — shopping multiple lenders on this fee can save hundreds to thousands. | 0 – 1% of loan |
| Discount Points | Lender | Optional. Each point = 1% of loan amount and typically buys down your rate by 0.25%. Only makes sense if you plan to stay long enough to recoup the upfront cost. | Optional |
| Credit Report Fee | Lender | Cost of pulling your credit during the loan process. Usually paid upfront before closing. | $30 – $50 |
| Appraisal Fee | Appraiser | Required by most lenders. A licensed appraiser's determination of the property's market value. Typically paid upfront during the loan process, not at the closing table. | $500 – $750 |
| Title and Escrow Fees | |||
| Lender's Title Insurance | Title Company | Required by your lender. Protects the lender (not you) if a title defect is discovered after closing. One-time premium paid at closing. | $500 – $900 |
| Owner's Title Insurance | Title Company | Optional — but strongly recommended. Protects you as the buyer from undiscovered title defects, liens, or ownership disputes. One-time premium, lifetime coverage. | $600 – $1,200 |
| Escrow / Settlement Fee | Title / Escrow | The title company's fee for managing the closing transaction — receiving funds, coordinating documents, and disbursing proceeds. Split with seller in some Utah transactions. | $400 – $700 |
| Recording Fees | County Recorder | County government fee to record the deed and mortgage documents in public records. Fixed by county — not negotiable. | $50 – $150 |
| Prepaids and Escrow Setup | |||
| Prepaid Interest | Lender | Interest charged from the closing date to the end of the month. The later in the month you close, the less you pay at closing. Closing early in the month = more prepaid interest. | Varies by date |
| Homeowner's Insurance (1 yr) | Insurance Co. | First year's premium paid upfront at closing. Northern Utah HOI rates depend on property type, location, and coverage level. | $1,200 – $2,400 |
| Property Tax Proration | County / Escrow | You reimburse the seller for any property taxes already paid covering the period after your ownership starts. Or, if taxes are paid in arrears, you may receive a credit. | Varies |
| Initial Escrow Deposit | Lender | 2-3 months of property taxes and insurance deposited into your escrow account to start the account. Your lender will use this account to pay future tax and insurance bills. | 2–3 months |
| Total Buyer Closing Costs | On a $450,000 purchase in Northern Utah | $9,000 – $18,000 | |
Cost Breakdown Visual
Buyer Closing Costs by
Category — $450,000 Purchase
Who Pays What
Buyer vs Seller — Who Pays What at Closing
In a standard Northern Utah real estate transaction, closing costs are split between buyer and seller — but not always evenly. Understanding who is responsible for each fee helps both parties negotiate effectively and avoid last-minute surprises.
Buyer
What Buyers Typically Pay
2 – 4% of purchase price
All lender fees
Origination, appraisal, credit report — all costs associated with obtaining your mortgage
Varies
Lender's title insurance
Required by your lender to protect their interest in the property
$500–$900
Owner's title insurance
Technically optional — strongly recommended to protect your ownership
$600–$1,200
Prepaid interest, insurance, escrow setup
Future expenses prepaid at closing — the largest category for most buyers
$3,600–$7,200
Recording fees
County government fee to record the deed transfer in public records
$50–$150
Seller
What Sellers Typically Pay
6 – 9% of sale price
Agent commissions
Buyer's and listing agent combined — the largest single cost for most sellers
5–6%
Owner's title insurance
In Northern Utah, the seller customarily pays for the owner's title policy
$600–$1,400
Escrow / settlement fee (split)
Seller's portion of the title company's closing fee
$400–$700
Property tax proration
Seller pays taxes owed through their ownership period at closing
Varies
Mortgage payoff
Remaining loan balance paid to lender from sale proceeds before net check
Balance owed
Every Fee Defined
Plain-Language Explanations
for Every Closing Line Item
Title Insurance Both
There are two title insurance policies at most Utah closings. The lender's policy (required) protects your mortgage company if a title defect emerges. The owner's policy (strongly recommended) protects you as the buyer. Both are one-time premiums with lifetime coverage — not annual fees. In Utah, the seller customarily provides the owner's policy.
Lender: $500–$900 | Owner: $600–$1,400
Loan Origination Fee Buyer
The lender's compensation for processing, underwriting, and funding your loan. Expressed as a flat fee or a percentage of the loan amount. This is the most negotiable lender fee — comparison shopping two or three Northern Utah lenders on origination alone commonly saves $1,000-3,000.
0 – 1% of loan amount
Prepaid Interest Buyer
Interest that accrues from the closing date to the end of the month. Your first mortgage payment covers the following month, so the gap is collected at closing. Closing on the last business day of the month minimizes this — closing on the 5th means you prepay 25-26 days of interest.
Daily interest rate × days until month-end
Escrow Setup (Reserves) Buyer
Your lender collects 2-3 months of property taxes and homeowner's insurance to start your escrow account. Going forward, your monthly payment includes 1/12 of the annual property tax and insurance, which your lender holds and pays on your behalf.
2–3 months property tax + insurance
Property Tax Proration Both
Utah property taxes are billed in arrears, paid November 30. At closing, taxes are prorated between buyer and seller based on the closing date. If taxes have already been paid, the buyer reimburses the seller. If unpaid, the seller credits the buyer for their share.
Prorated by closing date
VA Funding Fee VA Buyers
VA-specific fee that replaces PMI. Ranges from 1.25-3.3% of loan amount depending on down payment and first-vs-subsequent use. Can be rolled into the loan amount rather than paid at closing. Waived for veterans with 10%+ disability rating.
1.25 – 3.3% of loan (or waived)
"Randall walked us through every line item on our Closing Disclosure the night before closing. Not one number surprised us."
First-Time Buyers — Kaysville, Utah · Davis County
Ways to Reduce Your Closing Costs
Four Ways to Pay Less
at the Closing Table
at the Closing Table
01
Shop Multiple Lenders
Origination fees vary significantly between lenders. Getting quotes from 2-3 Northern Utah lenders and comparing their Loan Estimates is the single most effective way to reduce your total closing cost.
02
Negotiate Seller Concessions
Ask the seller to contribute 1-3% toward your closing costs as part of your offer. This is common in Northern Utah transactions, especially in markets with more inventory or when a home has been sitting. The total allowed depends on your loan type and down payment.
03
Close Near the End of the Month
Closing on the last 1-3 business days of the month minimizes the prepaid interest collected at closing — since you are only paying interest for a day or two, not for 20+ days.
04
Use a UHC Program
The Utah Housing Corporation Score second mortgage can cover down payment and closing costs for qualifying first-time buyers. See the Down Payment Programs guide for full eligibility details.
Related Tools
Free Tools for
Northern Utah Buyers and Sellers
Essential
Closing Cost Calculator
Personalized estimate based on your price, loan type, and county. Every fee itemized — no surprises.
Open Calculator →
Sellers
Net Proceeds Calculator
See your check after mortgage, agent commission, and all closing costs. Three price scenarios compared.
Open Calculator →
Buyers
Mortgage Calculator
Full monthly payment with real Northern Utah property tax rates — so you know your true carrying cost.
Open Calculator →
Common Questions
Closing Cost FAQ
Can I roll closing costs into my loan in Northern Utah?+
It depends on loan type. VA buyers can typically roll the funding fee into the loan. On conventional and FHA loans, you generally cannot roll closing costs directly into the loan amount — but you can negotiate seller concessions to cover them, or use a lender credit (accepting a slightly higher interest rate in exchange for the lender covering some closing costs). Talk to your lender about which options apply to your situation.
What is the Closing Disclosure and when do I receive it?+
The Closing Disclosure is a five-page document your lender must provide at least three business days before your closing date. It details your final loan terms and all closing costs. Compare it carefully to your original Loan Estimate — any increases in specific fee categories must meet CFPB guidelines. I review every Closing Disclosure with my clients before closing day.
Do I need to bring a cashier's check or can I wire funds?+
In Northern Utah, most title companies require either a wire transfer or cashier's check for closing funds — personal checks are not accepted for amounts over $500. Wires are preferred by most title companies because they are confirmed the same day. Confirm the exact wire instructions and amount with your title company the day before closing — wire fraud targeting real estate transactions is common, so always verify instructions by phone.
Can the seller pay my closing costs?+
Yes. Seller-paid closing costs are a common negotiating point in Northern Utah home purchases. The maximum amount a seller can contribute depends on your loan type and down payment: conventional loans allow 3-9% depending on down payment, FHA allows up to 6%, and VA allows up to 4% in concessions plus an unlimited amount for actual closing costs. Ask me about structuring seller concessions into your offer effectively.
For the CFPB's guide to reviewing your Closing Disclosure, see ConsumerFinance.gov closing disclosure guide.
No Surprises — Northern Utah
Know Every Dollar Before
Your Closing Day
Run the free calculator for your exact Northern Utah closing cost estimate — then call me. I review every Closing Disclosure with my clients the night before so there are zero surprises.
