Delaware Closing Cost Calculator

Closing Cost ScenarioStandard Purchase (3% Total Transfer Tax Split)Wilmington/High Tax Area (4% Total Split)First-Time Homebuyer (Tax Discount)

Home Purchase Price ($):

Lender Fees ($):

Title & Attorney Fees ($):

Prepaids/Insurance ($):

Show Detailed Breakdown

Estimated Delaware Buyer Closing Costs:

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Lender Fees:	$'+lender.toLocaleString()+'
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Prepaids & Reserves:	$'+prepaid.toLocaleString()+'
Total Estimated Cash Needed:	$'+total.toLocaleString()+'

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How to Use the Delaware Closing Cost Calculator

Buying a home in the First State involves more than just the down payment. The delaware closing cost calculator helps buyers estimate the total cash required at the settlement table. To get an accurate estimate, follow these steps:

Home Purchase Price: Enter the agreed-upon sale price of the property. This is the primary figure used to calculate the Delaware transfer tax.
Closing Cost Scenario: Select whether you are a standard buyer, a first-time homebuyer, or purchasing in a high-tax municipality like Wilmington. This significantly affects the transfer tax rate.
Lender & Title Fees: Input estimated costs for loan origination, appraisals, and legal fees provided by your lender and attorney.

Understanding Delaware Transfer Taxes

The most significant variable in any delaware closing cost calculator is the realty transfer tax. In Delaware, the statewide transfer tax is typically 4% of the purchase price. However, this is usually split equally between the buyer (2%) and the seller (2%). In some counties and for first-time buyers, these rates change:

Standard Split: Generally, the buyer pays 1.5% to 2% depending on the specific municipality.
First-Time Buyer Program: Qualified first-time Delaware homebuyers may receive a 0.5% reduction in the state portion of the transfer tax, bringing their total obligation down significantly.
City of Wilmington: Properties within Wilmington city limits often carry a higher local transfer tax, resulting in a total rate of 4% or 5% (split between parties).

Calculation Example

Example: A standard buyer purchasing a home in Dover, DE for $300,000.

Step-by-step solution:

Purchase Price: $300,000
Buyer Transfer Tax (1.5%): $4,500
Estimated Lender Fees: $1,200
Attorney & Title Insurance: $1,800
Prepaid Taxes & Insurance: $2,500
Total Closing Costs: $10,000

Common Questions

Who pays closing costs in Delaware?

Both the buyer and the seller pay closing costs. The seller typically pays the real estate commission and their half of the transfer tax. The buyer pays for loan-related fees, title insurance, and their half of the transfer tax.

Does Delaware have a first-time homebuyer credit?

Yes. Delaware offers a partial exemption on the state portion of the transfer tax for first-time buyers. This can save a buyer thousands of dollars depending on the purchase price of the home.

Are closing costs tax-deductible?

Generally, mortgage interest paid at closing and some property taxes are deductible. However, most closing costs, like transfer taxes and appraisal fees, are added to the "basis" of your home rather than being immediately deductible.