Mortgage lender closing cost rankings in North Dakota (2025)

North Dakota uses a non-judicial foreclosure process, meaning lenders can foreclose without court involvement, typically through a power-of-sale clause in the deed of trust or mortgage instrument. The state does not require an attorney to conduct the closing; title companies and escrow officers can handle settlement, placing it in the title-only category rather than an attorney-closing state. North Dakota imposes a real estate transfer tax at a rate of $1.50 per $500 of sale price (0.3%), generally paid by the seller, though this is negotiable. Title insurance rates are governed under a prior-approval regulatory framework, meaning insurers must file their rates with the state Insurance Department and receive approval before using them. Prepayment penalties on residential mortgages are restricted under federal Qualified Mortgage rules; North Dakota also generally prohibits prepayment penalties on residential mortgages under N.D. Cent. Code §47-14-05. The North Dakota Department of Financial Institutions oversees mortgage lender licensing and consumer complaint resolution, providing a state-level layer of oversight alongside federal agencies.

Conventional loans dominate North Dakota's purchase market, accounting for 64.3% of 2024 originations (3,852 loans) at a median rate of 6.5%. FHA loans represent a meaningful 20.0% share (1,200 originations), likely reflecting the state's mix of moderate-income buyers and smaller urban markets. VA loans account for 14.1% (844 originations), supported in part by military presence at installations such as Minot Air Force Base. USDA loans are a small but present segment at 1.6% (96 originations), reflecting the state's significant rural and agricultural geography where USDA Rural Development programs apply.