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Closing Costs

Closing Costs in Vermont (2026): What You'll Pay at the Table

Closing costs in Vermont average 3.00% of the purchase price — $11,955 on a $398,500 home. That's on top of your down payment, including a 1.50% transfer tax, and optional attorney costs. Here's exactly what you'll pay at the table.

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As % of purchase price

3.00%

ClosingCorp 2021 / Urban Institute 2025

Transfer tax rate

1.50%

State revenue authority

What's Included in Vermont Closing Costs

Breakdown on a $398,500 purchase with 6.4% rate

FeeEst. Amount
Loan origination fee$3,188
Appraisal$550
Title search & insurance$1,600
Transfer taxVermont-specific$5,978
Prepaid interest$838
Homeowners insurance (escrow)$1,311
Property tax (escrow)$1,724
Recording & govt fees$250
Total estimated closing costs$11,955

Estimates based on $398,500 purchase. Actual costs vary by lender, county, and loan type.

Closing Costs Calculator — Vermont

Pre-loaded with Vermont's transfer tax rate and median purchase price of $398,500

Closing Costs Estimator

Vermont rates pre-loaded

$
0%50%

Estimated Closing Costs

$12,312

3.1% of purchase price

Loan origination fee (est. 1%)$3,188
Appraisal$500
Title insurance — lender's policy (est. 0.5%)$1,594
Transfer tax (1.50%)$5,978
Recording fees$200
Prepaid interest (est. 15 days)$852

Estimates only. Actual costs vary by lender, title company, and county.

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Vermont Real Estate Transfer Tax

Transfer taxes are calculated on the sale price and paid at closing

Rate

1.50%

On median-price home

$5,978

Property Transfer Tax: 1.25% on purchase price up to $100,000; 1.45% above $100,000 (effective blended rate ~1.5% at median price). First-time buyers of owner-occupied primary residences pay 0.5% on first $100,000; exempt from state transfer tax on first $110,000 of clean energy system value.

Source: Vermont revenue authority

Attorney at Closing: Not Required in Vermont

Vermont uses title companies and escrow officers

An attorney is not required at closing in Vermont. A title company or escrow officer handles the closing process. You may still hire an attorney for contract review — typically $300$800 — but it's optional.

Estimated Closing Costs by City in Vermont

Based on each city's median price and Vermont's closing cost rates

Closing cost estimates — Vermont cities

CityMedian PriceTransfer TaxTitle InsuranceEst. Total
Burlington$512,000$7,680$1,600$15,360
South Burlington$498,000$7,470$1,600$14,940
Stowe$1,100,000$16,500$1,600$33,000
Montpelier$368,000$5,520$1,600$11,040
Source: ClosingCorp 2021 / Urban Institute 2025 — estimated at 3.00% of purchase price

APR Calculator — True Cost of Your Loan

APR folds in closing costs so you can compare loans with different fee structures. Pre-loaded with Vermont's median loan amount of $318,800 at 6.4%.

APR Calculator

Compare loans with different fee structures by seeing the true annual percentage rate — pre-loaded with Vermont's median loan amount of $318,800.

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Should You Buy Points to Lower Your Rate?

Each point costs 1% of the loan ($3,188) and reduces your rate by roughly 0.25%. This calculator shows your break-even month.

Mortgage Points Break-Even Calculator

Find your break-even month — pre-loaded with Vermont's $318,800 median loan at 6.4%.

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How to Reduce Closing Costs in Vermont

1

Shop lenders — fees vary widely

Origination fees and points differ by lender. Get Loan Estimates from at least 3 lenders on the same day so you compare apples to apples. A 0.5% difference on a $318,800 loan is $1,594.

2

Negotiate seller concessions

In a buyer-friendly market, sellers may agree to cover 2-3% of closing costs. On a $398,500 Vermont home, a 2% concession is $7,970 — nearly your entire closing cost budget.

3

Understand who pays transfer tax

Property Transfer Tax: 1.25% on purchase price up to $100,000; 1.45% above $100,000 (effective blended rate ~1.5% at median price). First-time buyers of owner-occupied primary residences pay 0.5% on first $100,000; exempt from state transfer tax on first $110,000 of clean energy system value. Transfer tax is sometimes negotiable between buyer and seller depending on local custom and market conditions.

4

Compare title insurance quotes

In most states, you can choose your own title company. Call 2-3 providers — rates are often filed with the state but there can be flexibility in bundled services.

5

Close near end of month

Closing at month-end minimizes prepaid interest (you only owe interest from closing date to month-end, then your first payment isn't due for ~6 weeks). On $318,800 at 6.4%, each day saved is $56.

Mortgage Payment Calculator — Vermont

After closing costs, here's what your monthly payment looks like on $398,500 in Vermont

Mortgage Estimator

Vermont rates pre-loaded

$
3%50%
%

Monthly Payment (P&I)

$1,994

principal & interest only

Loan amount$318,800
Est. property tax$332/mo
Est. total with tax$2,326/mo
Total interest (30 yr)$399,081

Estimate only — excludes insurance, PMI, HOA.

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Frequently Asked Questions

What are average closing costs in Vermont?
Closing costs in Vermont average 3.00% of the purchase price. On the state median of $398,500, that's approximately $11,955. Vermont ranks Above average — 1.5% effective transfer tax and high home prices nationally. Source: ClosingCorp 2021 / Urban Institute 2025.
Does Vermont have a real estate transfer tax?
Yes. Property Transfer Tax: 1.25% on purchase price up to $100,000; 1.45% above $100,000 (effective blended rate ~1.5% at median price). First-time buyers of owner-occupied primary residences pay 0.5% on first $100,000; exempt from state transfer tax on first $110,000 of clean energy system value. On a $398,500 home, the transfer tax alone is $5,978.
Is an attorney required to close on a home in Vermont?
No — Vermont does not require an attorney at closing. A title company or escrow officer handles the closing process. You may still choose to hire an attorney for contract review, which is optional.
What is title insurance and how much does it cost in Vermont?
Title insurance protects the lender (and optionally you) against ownership disputes, liens, and title defects discovered after closing. In Vermont, lender's title insurance averages $1,600. Owner's title insurance is separate and typically costs 0.5–1% of the purchase price. Unlike other insurance, it's a one-time premium paid at closing.
Can closing costs be rolled into the mortgage in Vermont?
You cannot roll closing costs into a purchase mortgage — lenders fund only the home's purchase price. However, you can negotiate seller concessions (seller pays your closing costs), use a slightly higher rate in exchange for lender credits, or apply down payment assistance funds toward closing costs. On a $318,800 loan in Vermont, 1 point of lender credit costs about $797/mo extra in payment.
When do I get the Closing Disclosure in Vermont?
Federal law (TRID) requires your lender to provide the Closing Disclosure at least 3 business days before closing. It shows final loan terms, monthly payment, and itemized closing costs. Compare it carefully to your Loan Estimate — lenders are limited in how much certain fees can change between the two documents.
What closing costs are tax-deductible in Vermont?
Most closing costs are not deductible. Exceptions: prepaid mortgage interest (the interest accrued between closing and your first payment), and mortgage points paid to buy down your rate may be deductible in the year paid or amortized over the loan term. Property taxes prepaid at closing are deductible up to the $10,000 SALT cap. Consult a tax professional for Vermont-specific guidance.

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