Average Closing Costs in Annapolis, Maryland (2026 Guide)
Homebuyers in Annapolis typically pay $9,700 to $24,250 in closing costs on a $485,000 home — approximately 2.5% of the purchase price.
2026 Closing Cost Fee Breakdown
Based on $485,000 median home price in Annapolis
| Fee | Typical Range | Negotiable? |
|---|---|---|
| Origination Fee | $500 – $2,500 | Yes |
| Underwriting Fee | $400 – $1,200 | Yes |
| Processing Fee | $300 – $900 | Yes |
| Appraisal Fee | $400 – $700 | No |
| Credit Report | $25 – $75 | No |
| Flood Certification | $10 – $50 | No |
| Lender's Title Insurance | $500 – $2,000 | No |
| Settlement Fee | $300 – $800 | Sometimes |
| Recording Fees | $50 – $250 | No |
| Prepaid Interest | Varies by rate | No |
| Property Tax Escrow | 2–3 months | No |
| Homeowners Insurance | 1–2 months | No |
| Estimated Total | $9,700 – $24,250 |
Ranges are typical for a conventional purchase loan · Prepaid and escrow amounts vary by closing date and lender · Source: FairRate market data 2026
Annapolis Home Price & Closing Cost Context
The median home price in Annapolis is approximately $485,000. At the Maryland average closing cost rate of 2.5%, a buyer in Annapolis would pay approximately $12,125 in total closing costs — within the typical range of $9,700 to $24,250.
Closing costs in Annapolis cover both lender fees (origination, underwriting, processing) and third-party fees (appraisal, title insurance, settlement, recording). Lender fees are negotiable; third-party fees are mostly fixed, though you can sometimes shop for your own settlement agent to reduce those costs.
Maryland Real Estate Laws That Affect Your Closing Costs
Maryland has both a State Transfer Tax and county-level recordation tax. Maryland has a first-time homebuyer exemption that reduces the state transfer tax from 0.5% to 0.25% for qualifying buyers.
Transfer Tax in Maryland
Maryland State Transfer Tax is 0.5% of sale price (0.25% for first-time buyers). County recordation taxes vary — Montgomery County charges $8.90 per $1,000, Baltimore City charges $10 per $1,000.
Who Pays Closing Costs in Maryland?
Buyer Typically Pays
- · Lender origination, underwriting & processing fees
- · Appraisal fee
- · Lender's title insurance
- · Prepaid interest, property tax, homeowners insurance escrow
- · Recording fees
Seller Typically Pays
- · Real estate agent commissions
- · Transfer taxes (see details above)
- · Owner's title insurance (in most Maryland transactions)
- · Any outstanding liens or HOA dues
Buyer/seller splits can shift via negotiated concessions. In competitive Annapolis markets, sellers may be less willing to cover buyer closing costs. Your Loan Estimate will show all buyer-paid fees within 3 business days of application.
Local Market Notes for Annapolis
Annapolis is currently in a seller-leaning market. Sellers are less likely to offer closing cost concessions, but you can still negotiate lender fees directly.
Closing Process
Maryland uses title companies or escrow officers. Closings typically take 30–45 days.
Lender Competition
Maryland has solid lender competition. Two to three quotes is usually enough to identify the best rate.
First-Time Buyer Programs in Maryland
DHCD offers the Maryland Mortgage Program with competitive rates and down payment assistance.
Income and purchase price limits apply. Contact your lender or your state housing finance agency for current program terms in Annapolis.
Which Fees Are Negotiable?
The fees in Section A of your Loan Estimate are set by the lender and are negotiable: origination, underwriting, and processing fees. Section B fees — appraisal, title, recording — are set by third parties and cannot be negotiated with the lender.
What to Do When You Get Your Loan Estimate
Your lender must provide a Loan Estimate within 3 business days of application. Check Section A fees against the ranges above, ask your lender to justify any fee above the typical range, and compare total closing costs across at least two lenders.
Frequently Asked Questions — Annapolis Closing Costs
How much are closing costs in Annapolis, Maryland?
Homebuyers in Annapolis typically pay $9,700 to $24,250 in closing costs on a median-priced home of $485,000 — approximately 2.5% of the purchase price.
Who pays closing costs in Maryland?
In Maryland, buyers pay lender fees, appraisal, title insurance, and recording fees. Sellers typically pay real estate commissions. Transfer taxes apply — see details above.
What closing costs can I negotiate in Annapolis?
The most negotiable closing costs in Annapolis are lender fees — specifically the origination fee, underwriting fee, and processing fee listed in Section A of your Loan Estimate. Third-party fees like appraisal and title insurance are set by independent providers and are harder to negotiate directly with your lender.
Get Your Fees Analyzed