What Are Closing Costs on a $1.5M Austin Home? A Real Breakdown

On a $1.5M Austin purchase with 20% down, most buyers should plan on roughly $30,000 to $36,000 in closing costs, or about 2% to 2.5% of the price, and about $37,000 to $44,000 if the buyer ends up paying for the owner's title policy. A cash buyer will land far lower, since lender fees, prepaid interest, and the lender's title policy disappear. The exact number swings mostly on three things: how many discount points you buy, what your insurance and property tax prepaids look like, and who pays for the title policy.

I walk clients through this number before we ever write an offer, because at this price point a surprise of $10,000 is not unusual. Here is how it breaks down.

What does a typical $1.5M closing cost estimate look like?

These are illustrative numbers for a $1.5M home, $300,000 down, and a $1.2M loan. They are my budgeting estimates, not a quote, and your lender and title company will give you the real figures.

• Loan origination (0.5 to 1 point): $6,000 to $12,000. Guides from Texas title and mortgage professionals put origination at 0.5% to 1% of the loan, and some lenders charge none.
• Underwriting, processing, appraisal and credit fees: about $1,500 (my estimate; lender specific).
• Lender's title policy and endorsements: about $600. When it is issued with the owner's policy, the lender's policy itself adds only about $100, and endorsements make up the rest.
• Escrow and settlement fee: about $1,000 (my budgeting figure; ask your title company).
• Survey: about $500 for a standard lot. Larger Hill Country lots and acreage cost more, and an existing survey with a T-47 affidavit can sometimes cover you. (However, most homes you do not need to order a new survey, and this cost is negotiable between buyer and seller)
• Prepaid interest: about $3,200, assuming a 6.5% rate and 15 days of interest.
• Property tax escrow: about $7,500, assuming a hypothetical 2% effective rate ($30,000 a year) and three months collected at closing.
• Homeowners insurance: about $10,000, assuming a hypothetical $10,000 annual premium paid in full at closing. Quotes on luxury homes vary a lot by age, roof, and location.

Add those up, and you land between about $30,000 and $36,000 depending on whether you buy half a point or a full point. Home inspections, the appraisal, and your option fee are paid before closing, so budget for those separately.

Who pays for the owner's title policy in Austin?

Under the standard Texas contract used in the Austin market, the seller customarily pays for the owner's title policy, but it is negotiable. Texas sets title insurance premiums, so the price doesn't change from one title company to the next. Under the rate card effective March 1, 2026, published by Republic Title, the owner's policy on a $1,500,000 purchase is $7,256. If a seller asks you to take that on in a competitive negotiation, that is real money, and you should weigh it like any other concession.

What you can shop is the settlement fee, the survey, and the escrow service.

What are the biggest swing factors?

Discount points. Every point on a $1.2M loan is $12,000. Whether it makes sense depends on how long you plan to stay and what a lower rate saves you each month. I would rather you run that break-even calculation with your lender than guess.

Prepaids. People call these closing costs, but they are really your own money going into escrow. At this level, the insurance premium and tax escrow are often the largest line items after points. If you are buying in West Lake Hills or another Eanes ISD area, the tax rate and your premium will look different than in a MUD or PID community, which can add its own assessment on top. I cover that in my guide on the true cost of owning a $2M home in Austin.

Your price and your lender. Costs that are a percentage of the loan scale with the price. A Tarrytown buyer at $1.5M and a buyer at $2.5M will see title premiums, points, and prepaids all climb with the price, so budget from your own price rather than a rule of thumb.

What do sellers pay at a $1.5M closing?

Sellers have their own list. Their largest items are typically the owner's title policy, agent compensations, any repair or closing cost credits negotiated after the option period, and the payoff of the existing mortgage. Texas has no state transfer tax, which helps both sides. Property taxes are prorated at closing, so the seller reimburses the buyer for the days they owned the home.

How can a buyer lower closing costs?

• Ask for a seller concession toward closing costs or a rate buydown. In a market with more negotiating room, this is often easier to get than a price cut.
• Get a Loan Estimate from at least two lenders. Compare the origination charge and the points, not just the rate.
• Ask your title company to quote the survey and endorsements early so there are no surprises on the Closing Disclosure.
• Time your closing for the end of the month if you want to minimize prepaid interest, because there are fewer days of interest to collect.

Bottom Line

Plan on 2% to 2.5% of the purchase price for a financed $1.5M home, which is $30,000 to $36,000, and add $7,256 if the owner's title policy ends up on your side. Treat the estimate as a range until your lender issues a Loan Estimate, and ask for it before you make an offer, not after. If you want a line-by-line number built around your down payment and the specific homes you are considering, send me a note and I will put it together.

FAQ

Are closing costs different for cash buyers?

Yes. A cash buyer skips origination, lender fees, the lender's title policy, and prepaid interest. You still pay the settlement fee, survey, and any owner's policy you negotiate, plus the property tax proration at closing.

Can I roll closing costs into the loan?

On a purchase, you generally cannot finance them on top of the loan. The usual tools are seller concessions, a lender credit in exchange for a slightly higher rate, or paying them out of pocket.

Does title insurance cost more at $1.5M than at $1M?

Yes, but not proportionally. The state rate schedule climbs on a sliding scale, so the owner's policy at $1.5M is $7,256 under the rates effective March 1, 2026. Your title company can quote the exact figure for your price.

When do I find out my exact closing costs?

Your lender must give you a Loan Estimate within three business days of your application, and a Closing Disclosure at least three business days before closing. Review both against my estimate and ask questions on anything that looks off.

If you're thinking about buying or selling in Austin at the $1M+ level, I'd love to chat.

Kelsey Easton, Compass Austin
(512) 699-6091
[email protected]
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