Closing Costs in Lamorinda: What Buyers Need to Know (And Budget For)

You’ve done your research, saved diligently for a down payment, and started exploring homes in Lafayette, Moraga, and Orinda. Perhaps you’ve even obtained pre-approval from a lender. Then, someone asks:

“Have you factored in closing costs?”

Suddenly, you're searching for answers to questions like “What are closing costs in California?” and “How much extra do I need to budget?”

This guide is designed to provide clarity. Using the current $1.75 million median home price in Lamorinda as a reference point, I’ll walk you through what buyers typically pay in closing costs. Whether you're purchasing your first home or relocating from out of state, this is essential information to review before making an offer.

First: What Are Closing Costs (in Lamorinda)?

Closing costs refer to the additional expenses a buyer is responsible for at the time of finalizing a real estate transaction. These costs cover essential services such as loan origination, title insurance, property taxes, homeowners insurance, and escrow processing.

They are separate from your down payment and typically range from 2% to 3% of the purchase price, although the exact amount can vary depending on your lender, title and escrow company, and the details of the transaction.

Real Example: Buying a $1.75M Home in Lamorinda

To provide a realistic perspective, let’s consider a home purchase at $1,750,000, which reflects the current median sold price in Lamorinda—including Lafayette, Moraga, and Orinda. In this scenario, the buyer makes a 20% down payment and obtains conventional financing.

Estimated Cash Required to Close:

• Down Payment (20%): $350,000

• Estimated Closing Costs: $43,186.64

• 💰 Total Estimated Funds Needed at Closing: $393,186.64

Estimated buyer costs for a $1.75M home in Lamorinda with 20% down. Actual figures will vary by lender, escrow company, and transaction terms.

A Detailed Breakdown of Buyer Closing Costs

To better understand how the estimated closing figure is calculated, here’s a breakdown based on a $1.75M home purchase with 20% down financing.

Buyer’s Loan Details

• Home Price: $1,750,000

• Down Payment (20%): $350,000

• Loan Amount: $1,400,000

• Interest Rate: 5.875% (APR 5.977%)

Estimated Monthly Payment (PITI)

• Principal & Interest: $8,281.53

• Property Taxes: $1,822.92

• Homeowners Insurance: $510.42

• Total Monthly Payment: $10,614.87

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Fixed Closing Costs – Estimated at $29,014.84

These are one-time fees paid to third-party providers involved in your transaction:

Breakdown of Fixed Closing Costs: This estimate outlines typical buyer-paid fixed costs in a Lamorinda home purchase, including title, escrow, lender, and county-related fees. Actual costs may vary based on lender, service providers, and transaction terms.

➤ Title & Escrow Fees – $8,211.00

Includes:

• Homeowner’s Title Insurance

• Lender’s Title Insurance

• Escrow Services

• Notary, Flood Cert, Endorsements

➤ Lender Fees – $15,260.00

Includes:

• Origination Fee (varies by lender)

• Appraisal

• Processing & Underwriting

• Credit Report

➤ Other Fees – $5,543.84

Includes:

• Prorated Property Taxes

• County Recording Fee

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Prepaid Costs – Estimated at $14,171.80

These are upfront payments required for recurring homeownership expenses:

• 14 Months of Homeowners Insurance: $7,145.83

• 2 Months of Property Taxes: $3,645.83

• 15 Days of Loan Interest: $3,380.14

⚠️ Please Note

The figures provided above are for illustrative purposes only. Final closing costs will vary based on your selected lender, title and escrow provider, insurance carrier, and loan terms.

For a personalized, accurate estimate, please don’t hesitate to reach out. I’ll walk you through your numbers step-by-step and help you prepare with confidence.

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Who Typically Pays What in Lamorinda?

In Contra Costa County, which includes Lafayette, Moraga, and Orinda, the division of closing costs generally follows local custom. While specific terms can be negotiated in each transaction, the following is a typical breakdown:

Buyers Typically Pay For:

• Escrow fee

• Lender’s title policy

• Lender and appraisal fees

• Prepaid costs

Sellers Typically Pay For:

• County transfer tax

• Any applicable city transfer tax

Customary Closing Costs by County in California: This chart outlines who typically pays for escrow and title fees, along with applicable county and city transfer taxes. In Contra Costa County—including Lafayette, Moraga, and Orinda—buyers customarily cover title and escrow fees, while sellers pay the county transfer tax. Practices vary by location and can be negotiated.

In neighboring cities such as Berkeley and Oakland (located in Alameda County), city transfer taxes are often significantly higher and are commonly split 50/50 between buyer and seller. However, Lafayette, Moraga, and Orinda follow more straightforward and cost-efficient practices for buyers.

Ready to Take the Next Step?

Buying a home in Lamorinda is an exciting milestone—but understanding the full financial picture is essential.

I work closely with my clients to ensure every detail is accounted for—so there are no surprises at the closing table. If you’d like a personalized estimate or have questions about the home buying process in Lafayette, Moraga, Orinda, or surrounding areas, let’s talk.