How Much Are Closing Costs for Buyers in Montgomery County, PA?
Most buyers in Montgomery County, PA should budget roughly 2 to 5 percent of the purchase price for closing costs, on top of the down payment. The biggest local line item is the realty transfer tax: the combined rate is 2 percent in most Montgomery County municipalities, and by custom the buyer and seller each pay 1 percent. On a $475,000 home, close to the county's recent median sale price, the buyer's share of transfer tax alone is $4,750.
What closing costs do buyers pay in Montgomery County?
Every purchase is a little different, but most Montgomery County buyers see these items on their settlement statement:
Realty transfer tax (usually your 1 percent share)
Title insurance (a lender's policy if you have a mortgage, plus an owner's policy to protect you)
Title and settlement fees for the title search, closing services, and document preparation
Recording fees to record your deed and mortgage with the county
Lender fees such as origination, underwriting, credit report, and the appraisal
Prepaid items, including your first year of homeowners insurance, prepaid interest, and the starting balance of your escrow account
Tax adjustments that reimburse the seller for property taxes they already paid for days you will own the home
HOA or condo costs, if the home is in an association, such as a capital contribution or resale certificate fee
Your home inspection, radon test, and any other inspections are usually paid before closing, so budget for those separately.
How does the transfer tax work in Montgomery County?
Pennsylvania charges a 1 percent state realty transfer tax. In most of Montgomery County, there is an additional 1 percent local tax, split between the municipality (0.5 percent) and the school district (0.5 percent), for a total of 2 percent.
Who pays: By custom the buyer and seller split it evenly, but the split is negotiable and is written into your agreement of sale.
Why it matters if you are also looking in the city: Philadelphia's local transfer tax alone is 3.278 percent, so the total there is much higher than in most of Montgomery County.
Check the exact rate: Local rates are set by each municipality and school district, so we confirm the rate for every home we write an offer on.
Why do Montgomery County buyers pay property taxes at closing?
In Pennsylvania, many property tax bills are paid ahead for the tax year. County and township or borough bills usually go out early in the calendar year, and school district bills usually go out in July. If the seller has already paid a bill, you reimburse them at closing for the days you will own the home.
On top of that, your lender will usually collect a few months of taxes and insurance up front to fund your escrow account. Because school taxes are the largest part of a Montgomery County tax bill, the month you close can noticeably change how much cash you need on closing day. We will walk you through the timing before you choose a settlement date.
Is title insurance required when buying a home in Pennsylvania?
If you get a mortgage, your lender will require a lender's title policy. The owner's policy is optional, but we strongly recommend it. It is a one-time premium paid at closing that protects your ownership for as long as you or your heirs own the home.
In Pennsylvania, buyers commonly pay for both policies, though who pays is negotiable. Title insurance premiums in Pennsylvania follow rates filed with the state, so the premium for the same coverage tends to be similar between title companies. Settlement and service fees can still vary, so it is worth comparing the full quote.
What does 2 to 5 percent look like on a typical home?
Recent data puts the median sale price in Montgomery County at about $475,000. At that price:
2 percent is about $9,500
5 percent is about $23,750
Your 1 percent transfer tax share ($4,750) is already a large part of that range, which is why Montgomery County buyers often land in the middle of it rather than at the very bottom. Your loan type, down payment, interest rate choices, and closing month all move the final number.
How can I lower my closing costs?
Ask for seller assistance. Depending on the home and the market, a seller may agree to contribute toward your closing costs as part of the offer.
Compare Loan Estimates. Get estimates from more than one lender and compare lender fees line by line, not just the rate.
Ask about lender credits. Some lenders will cover part of your costs in exchange for a slightly higher rate.
Look into assistance programs. Montgomery County and the Pennsylvania Housing Finance Agency offer programs for eligible buyers. See our Home Buyer Assistance Programs page.
Plan your closing date. Closing later in the month reduces the prepaid interest you owe at settlement.
When will I know my exact closing costs?
Your lender must send a Loan Estimate within three business days of your loan application, and a Closing Disclosure at least three business days before closing. The Closing Disclosure shows your final numbers. Compare it to your Loan Estimate and ask us about anything that changed.
Who handles closing in Montgomery County?
Most Pennsylvania closings are handled by a title company that acts as the settlement agent. It collects funds, pays off the seller's loan, records documents, and issues your title policy. We help you choose a title company and coordinate the timeline with your lender.
Know your numbers before you make an offer.
The Shaina McAndrews Team at eXp Realty has more than 10 years of experience helping buyers across Montgomery County and Greater Philadelphia. We are licensed in PA and NJ, and we plant a tree for every home we close (more than 1,000 so far). Start with our estimate page, then book a quick call and we will run the numbers for the homes you are actually considering.
See Buyer Estimated Closing Costs
Schedule a Buyer Strategy Consultation
Search Montgomery County Homes
Call or text 215.767.7150 or visit MontCoLiving.com.
Sources
High Swartz LLP, Real Estate Transfer Tax in Montgomery County, PA
Collegeville Borough tax page (2 percent transfer tax, split 1 percent buyer and 1 percent seller)
Zillow Montgomery County, PA housing data (median sale price, mid-2026)
Redfin, How Much Are Closing Costs in Pennsylvania
AmeriSave, Average Closing Costs in Pennsylvania (2026)
Montgomery County First Time Homebuyers Program
