Michigan buyer closing cost calculator

The cash you bring is your down payment and closing costs, with property taxes split and credits taken off. We list them in the order your Closing Disclosure will, so you can check one against the other.

Purchase price

Paying cash, with no loan.

Your loan

Down payment

10% of the price.

Interest rate

An example: Freddie Mac's 30-year average on October 29, 2026. Your lender's Loan Estimate has your rate.

Lender fees

Appraisal

Both are examples. Your Loan Estimate lists your lender's real charges.

Title and fees

Title closing fee

An example. Title companies set their own fee, and your agreement decides how it is split.

You pay for the owner's title policy. Either side can buy it; your purchase agreement says who pays.

Brokerage transaction fee

Raven's is $395 on each buyer side. Other brokerages set their own.

Taxes and insurance

Closing date

First year of homeowner's insurance

An example. Get a quote for the home you are buying.

Your yearly property tax

An example: 40 mills on half the price. Your bill can be higher than the seller's after a sale.

The seller's yearly property tax

From the listing or the seller's bills. We split it as two equal bills.

How the bills are split

Your purchase agreement names the method.

Credits

Seller credits

Earnest money

Estimated cash to close

$49,300

Includes $9,630 in closing costs, 2.8% of the price. An estimate, not a Closing Disclosure.

Lender

Lender fees: $1,500
Appraisal: $600

Title and recording

Title closing fee: $550
Lender's title policy: $1,213
Recording fees: $60

Prepaid at closing

First year of homeowner's insurance: $2,000
Prepaid interest: $1,062.20
Starting escrow deposit: $2,250

Other

Brokerage transaction fee: $395

Cash to close

Down payment: $35,000
Closing costs: $9,630.20
Property tax paid back to the seller: $4,669.86
Estimated cash to close: $49,300.06

Have an agent check these numbers

How we figure it

Lender: Lender fees and the appraisal come from your Loan Estimate. The figures here are examples until you have yours.
Title and recording: The lender's policy at the filed rate on your loan, rounded up to the next dollar, and the closing fee, an example. Buying both policies from one insurer can bring a discount, so a title company may quote less. Recording is $30 a document: two with a loan, the deed and the mortgage, and one for cash.
Prepaid at closing: Your first year of homeowner's insurance, and interest from the closing day through the end of that month, at 1/365 of the yearly rate a day.
Starting escrow deposit: We run a year of escrow from your first payment: taxes going out evenly in July and December, insurance on its renewal. The deposit is what keeps the balance at or above a two-month cushion all year.
Property tax split: We split the seller's taxes as two equal bills, with the closing day as yours, under the method you pick. Your purchase agreement names the method.

A worked example

Illustrative example: a $350,000 home with 10% down at 7.24%, closing January 15, 2027. Lender fees, appraisal, closing fee, insurance and taxes are examples.
Lender fees	$1,500
Appraisal	$600
Title closing fee	$550
Lender's title policy	$1,213
Recording fees	$60
First year of homeowner's insurance	$2,000
Prepaid interest	$1,062.20
Starting escrow deposit	$2,250
Brokerage transaction fee	$395
Closing costs	$9,630.20
Down payment	$35,000
Property tax paid back to the seller	$4,669.86
Estimated cash to close	$49,300.06

Questions

How much are closing costs for a buyer in Michigan?

It depends on your loan, your closing date and your agreement. On a $350,000 home with 10% down, our example comes to $9,630 in closing costs, or 2.8% of the price, before the property tax split. Your lender's Loan Estimate has the real figures for your loan.

Who pays closing costs in Michigan, the buyer or the seller?

Both pay some. Michigan law makes the seller liable for the state transfer tax. A buyer with a mortgage pays the lender's charges and the lender's title policy. The purchase agreement decides the rest, such as who buys the owner's title policy and how property taxes are split.

What is prepaid interest?

Interest on your loan from the closing day through the end of that month. Your first regular payment usually comes the month after next, and it pays interest for the month before it, so this covers the gap. Closing later in a month means less of it.

Why do I pay an escrow deposit at closing?

If your lender pays your taxes and insurance for you, it collects a starting balance so the account can cover the bills as they come due. Federal rules let it hold a cushion of up to one sixth of a year's payments. Michigan's July and December bills are why the amount changes with your closing month.

Can the seller pay some of my closing costs?

Yes, if you negotiate it in the purchase agreement. A seller credit lowers the cash you bring. Ask your lender how a credit works with your loan before you write the offer.

Sources

Stewart Title, Michigan residential rate manual, effective February 17, 2025
First American Title, Michigan basic rate sheet, effective November 16, 2024
MCL 600.2567, recording fees
12 CFR 1024.17, escrow accounts and the cushion limit
Michigan Realtors, tax proration methods, August 2025
Freddie Mac, Primary Mortgage Market Survey, October 29, 2026

Checked October 31, 2026.

Keep going

Have an agent check these numbers

A Raven agent will go over your figures against your home and your market, and tell you which lines to firm up. Your numbers come with this form.

Estimate only, not a Loan Estimate, a Closing Disclosure or a quote. We don't make or arrange loans. Rates and fees change, and your lender and title company produce the final figures. General information, not legal or tax advice.