LodeStar Software Solutions (LodeStar), the leading provider of mortgage closing cost and fee data, today announced the release of its Year-Over-Year Mortgage Closing Cost Report covering 2024 versus 2025. The report analyzes distinct mortgage quotes across all 50 states and the District of Columbia (D.C.), drawn from the company’s closing cost calculator platform.
Decrease closely correlates with national home price trends, illustrating how closing costs impact housing affordability
CONSHOHOCKEN, Pa. /Mortgage and Finance News/ — LodeStar Software Solutions (LodeStar), the leading provider of mortgage closing cost and fee data, today announced the release of its Year-Over-Year Mortgage Closing Cost Report covering 2024 versus 2025. The report analyzes distinct mortgage quotes across all 50 states and the District of Columbia (D.C.), drawn from the company’s closing cost calculator platform. Nationally, purchase loan closing costs declined by 2.9%, driven largely by falling home prices, which reduced transfer tax burdens across many markets. In total, 28 states saw closing costs decrease, while 23 states experienced increases.
The most dramatic single-market shift occurred in D.C., where closing costs dropped 21.1%. Because D.C. has one of the highest transfer tax rates in the country, the significant decrease in the average purchase price here had a compounding effect on closing costs, though the area still has the highest dollar-value closing costs nationally. Conversely, home prices in Delaware rose modestly, pushing closing costs up by 4.5%, keeping it the most expensive state as a percentage of sale price at 3.06%.
Other key findings from LodeStar’s 2024 v. 2025: Year-Over-Year Mortgage Closing Cost Report include:
* An 7.8% surge in refinance volume, with refi closing costs averaging less than half of purchase closing costs;
* Higher-than-average refinance closing costs for New York and Florida borrowers, driven by taxes structured around the loan or note amount, rather than a property transfer, which then applies to both purchase and refinance transactions; and
* A growing trend of recording fees being redirected to fund non-real-estate programs, such as affordable housing and homelessness services, with little to no borrower visibility.
“The connection between closing costs and housing affordability is often overshadowed by other components to the equation, like interest rates and down payments,” said Ron Carvalho, director of data operations at LodeStar. “However, our data shows that decisions made at the state level on recording taxes and document fees have a direct impact on borrowers’ total financial ability to purchase or refinance their home. Knowing what’s happening with these costs helps lenders provide accurate guidance to their borrowers in their homeownership journey.”
Methodology
LodeStar’s dataset is drawn from the company’s closing cost calculator platform, which serves mortgage lenders across the United States. Each record represents a distinct quote (not a funded loan), identified by a unique search ID. Where lenders run multiple quotes for the same loan, only distinct transactions are counted.
Closing costs are reported both inclusive and exclusive of recording fees and transfer taxes, as these components are highly jurisdiction-specific and can create misleading cross-state comparisons when included without context. The report presents averages by state; individual market results may vary based on loan amount, property value, transaction type and title provider selection.
Average figures in this report represent the average of state-level averages and should be interpreted as a benchmark rather than a population-weighted national mean.
View the full report: https://www.lodestarss.com/2026/06/30/2024-vs-2025-year-over-year-mortgage-closing-cost-report/.
About LodeStar Software Solutions
Founded by Jim Paolino and David Spektor in 2013 in response to the complexities of closing cost disclosures, LodeStar is a privately held firm specializing exclusively in mortgage closing costs. From statewide transfer taxes to granular township-level fees, LodeStar ensures accurate, compliant fee disclosures for every loan, serving as a trusted partner in fee management. Driven by its core values of clarity, community and connectivity, the company helps mortgage lenders across the country drive down mortgage production costs through precise disclosures and reliable services. Learn more at https://www.lodestarss.com/.
Learn More: https://www.lodestarss.com/
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