Stunning coastlines and state parks, lively university towns with an eclectic start-up culture, and some of the nation’s most affordable housing and cities – there are plenty of reasons to move to Wisconsin. But here’s another one: The Badger State has more affordable closing costs than many other states.
Closing costs are an umbrella term, encompassing all the administrative and legal fees homebuyers must pay before they receive the keys to their new home. Homebuyers incur a lengthy list of fees during the homebuying process. There is your lender, appraiser, home inspector, insurance provider, and the taxman, just to name a few. Instead of paying for each service one-by-one, these expenses are cobbled together as your closing costs and paid in a single sum on closing day. You can count on closing costs to be about 2 to 5 percent of a home’s purchase price.
If you’re buying a new home in Wisconsin, NewHomeSource has put together the following guide to help you determine how much you should be saving for closing costs, state-specific rules, and how you can potentially lower these costs.
How Much Are Closing Costs in Wisconsin?
Let’s look at an example: if the median home value of a Wisconsin home is $269,000, buyers would pay approximately $5,375 to $13,500 in closing costs. Wisconsin while not in the top 10 lowest costs has less expensive closing costs across the nation according to Forbes.
But to err on the safe side, homebuyers in the Badger State should save a bit more than these initial estimates. That’s because this data excludes two major closing cost expenses: loan origination fees and private mortgage insurance, or PMI. Origination fees are necessary if you need to take out a home loan, and homebuyers must purchase PMI if their down payment is less than 20 percent. Both expenses can add thousands to their closing costs tab. PMI, for example, ranges from 0.25 to 2.25 percent of your loan.
Home values have also risen dramatically, driving up closing costs, too. As of February 2025, the median price for single-family homes was $304,000 according to the Wisconsin Realtors’ Association.
But keep in mind, your closing costs will fluctuate greatly depending on a handful of factors, such as the price and location of the home, down payment, credit score, and the type of mortgage.
What Is Typically Included in Wisconsin’s Closing Costs?
Each state has its own set of rules when it comes to real estate closings, from hiring an attorney to paying real estate transfer taxes. To help you navigate what to expect, we’ve grouped your closing costs into three categories: mortgage-related, property-related, and annual fees.
Mortgage-Related Fees
Unless you have the cash on hand to buy your new home outright, your first stop in the homebuying process will be to your lender to apply for a mortgage. The following are the closing cost fees you’ll incur, including the protocol for hiring an attorney:
Loan Origination Fees
Loan origination fees are one of the first expenses you’ll incur if you need a mortgage to help pay for your home purchase. Bank on this expense costing about 0.5 to 1 percent of your total home loan.
These are fees your lender will charge for all the work involved with setting up your home loan, from preparing your application, organizing the underwriting, and producing preapproval letters, to issuing your loan at closing.
Credit Report Fees
Whenever you apply for a loan, whether it’s a mortgage, credit card, or personal loan, your lender will need to pull your credit history with the various bureaus to see how you’ve managed previous debt. The lender will pass along any expenses they incur for pulling your credit report. If more than one borrower is on the loan application, double this cost.
Private Mortgage Insurance
If you aren’t providing a 20 percent down payment, your lender will expect you to buy private mortgage insurance. This allows borrowers to qualify for a conventional loan if they put down 5 to 19.99 percent. While you’re paying for the insurance, the coverage is for your lender in case of default.
PMI typically ranges from 0.25 to 2.25 percent of your loan. Once you hit the 20 percent mark in home equity, you don’t have to pay for PMI.
Escrow Fees
In Wisconsin, real estate closings are handled by title companies and escrow agents who will guide you through each step of the process.
One of the key things your title company will do is set up an escrow account, which is a neutral third-party account to hold onto your funds, such as your earnest money deposit. Basically, your seller (and the various vendors you’ve hired to help with your home purchase) won’t receive any funds until both parties have met all their conditions on the home sale, and the ink is dry on the property transfer. Instead, your title company will hold all cash in an escrow account.
On closing day, your title company will meet with you and your seller to sign off on the final bits of paperwork and hand over the keys.
In Wisconsin, this is typically an expense that’s paid by the buyer.
Attorney Fees
In some states it’s mandatory to hire a real estate attorney when you buy a home, but Wisconsin is not on that list.
Your real estate agent or title company may still insist that you enlist the wisdom of an attorney to help you with the legal aspects of your home purchase, though. An attorney can help draft your purchase agreement, certify deeds, and review your home insurance and title insurance policies. They’re especially valuable in complicated home sales, such as if the property you’re buying is in foreclosure or out of state.
Real estate attorneys will also do the heavy lifting and review your title abstract and verify that you have a clear title. They will also point out any red flags that you need to discuss with your seller before proceeding.
Property-Related Fees
Before you trade away your life’s savings to make the biggest purchase of your life, the property you’re buying will need to clear some pivotal checkpoints for you and your lender. Common property-related fees include:
Title Search and Title Insurance
During the closing process, your title company will order a title search. A title examination involves scanning historical records like deeds, court records, and property and name indexes to confirm the seller’s right to transfer ownership to you. Its function is to make sure there are no outstanding ownership disputes, unpaid taxes, judgments, or lawsuits in process, so you can own the land free and clear once it’s transferred.
You’ll also need title insurance policies for both you and your lender – called the owner’s policy and the lender’s policy. Title insurance protects both parties in case something is overlooked during the title search and there are “title defects” or claims to your property.
In Wisconsin, it’s customary for the buyer to pick up the lender’s policy, and the seller to pick up the owner’s policy. While most insurance policies are paid annually, title insurance is paid just once at closing, and it cannot be transferred to the next buyer.
Real Estate Transfer Tax
Whenever real estate changes hands, buyers and sellers need to account for a transfer tax during closing. In Wisconsin, this tax is set at a flat rate of $0.30 for every $100 of property value. That being said, a home priced at $304,000 would have a transfer tax of $912.
You may come across small fees from your county for record-keeping and documenting the transfer of property.
Property Appraisal
The fate of your home loan getting approved lies in a successful property appraisal, making this step a crucial moment in the homebuying journey. Before your lender agrees to issue your loan, they’ll send a third-party appraiser to verify that your potential property is priced accurately. If you default on your loan, your lender needs to know it can sell the home to recoup its losses.
The appraiser will scan the home, its size, key features, and condition to compare how it stacks up to similarly priced homes in the neighborhood. While it’s your lender that arranges this step, you’ll pick up the tab.
Property Inspection
While an appraiser zeroes in on the market value of your home, you’ll also need to hire an inspector whose job is to check on the health and safety of your big purchase.
This step is worth every penny. Your inspector will carefully examine the home’s condition, including the roof, foundation, major appliances, drainage systems, heating, and ventilation.
Listen to their insight on the home’s overall condition, including any issues or repairs you may be inheriting down the road. You can bring this intel back to your seller for future negotiations before finalizing the deal.
Annual Fees
Property taxes, mortgage payments, insurance premiums – homeownership is a never-ending cycle of bills. Your closing costs will include a handful of fees that you need to start paying annually, including:
Property Taxes
In Wisconsin, homeowners pay about 1.38 percent of their home’s assessed market value in property taxes, according to the Tax Foundation. (And yes, that’s high compared to other states!) But bear in mind, the amount may be higher or lower because property taxes are collected on a county level, with each region setting its own tax rate.
Property taxes are a prepaid expense, meaning they need to be paid at closing and can’t be rolled into your home financing.
Homeowner’s Insurance
Alongside title insurance and PMI, home insurance is another mandatory purchase you will need to make before your lender agrees to issue your home loan.
By closing, you must have a homeowner’s insurance policy paid for and in effect for the first year. While it is mandatory, this expense is worth it for your peace of mind – home insurance covers any physical damage to your home caused by fire, wind, vandalism, or theft.
How Can I Lower my Closing Costs in Wisconsin?
While closing costs are on the lower end in Wisconsin, you’ll still want to do your best to save every penny. Here’s a look at major strategies worth trying that can drive down your closing costs in a big way. They include:
Closing Cost Assistance
Start by taking advantage of Wisconsin’s homeownership assistance programs. If you qualify, these programs could put a significant dent in your closing costs.
Look into the Wisconsin Housing and Economic Development Authority or WHEDA. It has fixed-rate home loans, with reduced mortgage insurance premiums available to qualifying first-time and repeat homebuyers. WHEDA also has an Easy Close Down Payment Assistance Program, offering up to 6 per cent of your home’s purchase price in a 10-year fixed rate second mortgage with the same interest rate as your first mortgage. You can apply these funds towards your down payment and closing costs.
Look into local programs, too – from Apple and Eau Claire, to Milwaukee, Janesville and Madison, there is closing cost assistance up for grabs.
Get Your Finances in Shape
If your credit score is in bad shape, work on boosting it before shopping for a home loan. With a better credit score in hand, you’ll be able to secure a competitive interest rate, saving you thousands over the lifetime of your mortgage.
Apply as much as you can toward your down payment, too. The closer you get to the 20 percent threshold, the less you’ll have to pay in PMI.
Comparison Shop
While some closing cost fees are fixed, such as the appraisal and property taxes, you can shop around for some services, such as your lender, home inspector, and title company.
Take time to compare vendors, ensuring they’re appropriately accredited with glowing reviews from previous customers. With a shortlist in hand, ask for quotes so you will be confident you are getting the best deal.
Negotiate Lender Fees
If you have a longstanding, established relationship with your lender, you may have some wiggle room with your loan setup fees.
You could ask your lender to omit certain expenses from your bill, such as rate lock fees, loan processing fees, or broker rebates. If that doesn’t work, you could also ask to stagger these expenses, so they’re paid in stages instead of all at once at closing.
Seller Concessions
Don’t shy away from negotiating on who pays for which closing cost expenses with the seller, especially if you’re in a buyer’s market.
Try to reassign some of the closing costs. For example, you can submit a full-price offer with a caveat that the seller must pick up all your closing costs. If you’re building a new home, you could ask the builder to cover your closing costs in exchange for paying for a handful of pricey upgrades.
No-Closing-Cost Mortgages
With a “no-closing-cost” mortgage, your lender agrees to pay for part or all your closing costs, but you must pay a higher interest rate.
Be careful with this option: It could cost you more money overall because of the bump in your interest rate.
Add Closing Costs to Your Home Financing
Aside from the prepaid expenses that must be paid at closing, you could opt to roll your closing costs into your home loan. This could add thousands to your mortgage. You won’t have to pay for closing costs on the day you finalize the deal, but your monthly mortgage payments will be a bit higher.
Carmen Chai
Carmen Chai is an award-winning Canadian journalist who has lived and reported from major cities such as Vancouver, Toronto, London and Paris. For NewHomeSource, Carmen covers a variety of topics, including insurance, mortgages, and more.