Maine Closing Costs: What Buyers Actually Pay at the Table

Maine has several closing cost items that out-of-state buyers do not expect because they work differently here than elsewhere. The real estate transfer tax splits between buyer and seller — uncommon in most states where the seller absorbs it. Attorneys conduct closings, not title companies, which changes the fee structure. Recording fees went to a flat-fee model in January 2026. And if you are buying outside a municipal water system, well-water testing costs stack on top of the rest.

On a $350,000 home — close to Maine's median price in recent years — closing costs for the buyer typically run between $7,000 and $17,500, depending on loan type, property features, and what you negotiate. Here is a line-by-line breakdown.

The Core Closing Cost Items

Real Estate Transfer Tax (Buyer's Share)

Maine's RETT is charged at $2.20 per $500 of purchase price, split equally between buyer and seller. Your share is $1.10 per $500, or an effective rate of 0.22% of the purchase price.

• At $350,000: $770
• At $400,000: $880
• At $500,000: $1,100

This is a cash-at-closing item — it cannot be financed. For a $350,000 purchase, budget $770. Note that for transactions above $1,000,000 (effective November 1, 2025), the rate on the excess portion increases. Most first-time buyers fall well below this threshold.

Closing Attorney Fees

Maine is an attorney state — attorneys, not title companies, conduct closings. If you choose to exercise your statutory right to select your own closing attorney (which you should), you will pay for document review, closing representation, and related services. Typical attorney fees for a buyer's attorney range from $500 to $1,500, with hourly rates averaging around $349. If you use the lender's recommended attorney, fees may be structured differently but the statutory protection means you cannot be charged extra simply for choosing an independent attorney.

Estimate for $350,000 purchase: $850

Title Search Fee

The closing attorney performs a historical title search covering at least 40 years of land records under Maine State Bar Association Standards of Title. Typical title search costs range from $150 to $500.

Estimate: $350

Lender's Title Insurance

Your lender will require a lender's title insurance policy to protect their mortgage lien against future title defects. This is separate from owner's title insurance and is required for virtually all financed purchases. Cost typically runs $400 to $800 depending on loan amount.

Estimate: $550

Owner's Title Insurance

An owner's title insurance policy protects your equity against title defects discovered after closing — unpaid liens, boundary disputes, prior ownership claims, recording errors. While not legally required, it is strongly recommended. Typical cost is $600 to $1,200, or roughly $5.25 per $1,000 of purchase price.

Estimate: $750

Settlement/Escrow Fee

The settlement or closing fee covers the coordination of the closing itself — scheduling, document management, fund disbursement, and final recording coordination. Typically $550 to $800 in Maine.

Estimate: $650

County Recording Fees

As of January 1, 2026, Maine county registries of deeds operate on a standardized flat-fee structure:

• Standard real estate documents (deeds, mortgages): $40 per document
• Plan recording: $50
• Certified copies: $1 per page + $5 county certification fee

For a standard purchase transaction, expect to record two to three documents — deed, mortgage, and potentially a discharge — totaling roughly $80 to $120.

Estimate: $120

Appraisal Fee

Your lender orders an independent appraisal to confirm the property's market value supports the loan amount. Maine appraisal fees typically run $400 to $700.

Estimate: $500

Lender Origination Fees

Lender origination fees — covering loan processing, underwriting, and administrative costs — typically run 0.5% to 1.0% of the loan amount. On a $280,000 loan (assuming 20% down on a $350,000 purchase), that is $1,400 to $2,800.

Estimate: $2,800 (at 1.0%)

Prepaid Homeowners Insurance

Lenders require you to prepay the first year of homeowners insurance at closing. Maine homeowners insurance premiums vary by property, location, and coverage level, but typically run $1,200 to $1,800 annually for a standard single-family home.

Estimate: $1,400

Prepaid Property Tax Escrow

Lenders collect a property tax cushion at closing — typically 2 to 6 months of property taxes — to fund the escrow account used to pay taxes when they come due. The amount depends on the local tax rate and your closing date's position within the tax year.

Estimate: $1,500

Total Estimated Closing Costs

That works out to approximately 2.9% of the purchase price — within the standard 2% to 5% range, but toward the lower end because this assumes a 20% down payment (eliminating private mortgage insurance) and a moderate loan amount.

What Pushes Closing Costs Higher

Several factors can push Maine closing costs above this estimate:

Lower down payment + mortgage insurance: FHA loans require an upfront mortgage insurance premium (MIP) of 1.75% of the loan amount — on a $330,000 FHA loan, that is $5,775 (which can be financed, but increases the loan balance). Annual MIP adds to the monthly payment.

Well water and radon testing: If the property has a private well, budget $70 to $200 for required water testing (depending on loan type and number of supplemental tests needed) and $70 for radon testing.

Discount points: If you pay upfront points to lower your interest rate, each point costs 1% of the loan amount.

USDA guarantee fee: USDA loans charge a 1% upfront guarantee fee (typically financed) and a 0.35% annual fee.

MaineHousing loans: May include a 0-point or 2-point structure that affects upfront costs.

What Can Be Reduced

Closing cost assistance: MaineHousing's Advantage grant provides up to $5,000 toward down payment and closing costs. Portland's Down Payment Assistance Loan can cover significantly more for qualifying buyers.

Seller credits: In a negotiated purchase, you can ask the seller to contribute a credit toward your closing costs. Seller credits are common in markets where properties have been sitting, and where the seller is motivated to close. In competitive Portland-area markets, asking for seller credits weakens your offer position relative to competing bids.

Lender fees: Origination fees are negotiable. Different lenders quote different structures. Shop at least three lenders before committing.

The Maine First-Time Home Buyer Guide includes a closing cost worksheet covering all line items with space to fill in lender quotes, seller credits, and your final cash-to-close figure — so you know exactly what to bring to the table.

See more United States guides →