Closing Cost Estimator

Closing Cost Estimator

Closing costs typically range from 2% to 5% of the loan amount. Get a detailed breakdown.

Fee Assumptions (Editable)

Lender fee (0.5% - 1.5%)
Varies heavily by state.
Upfront property tax/insurance.

How This Tool Works

This calculator provides an itemized estimate of the fees and prepaid expenses required to finalize your real estate transaction. Closing costs usually range from 2% to 5% of the loan amount.

  • Lender Fees: These include origination points, application fees, and credit reports.
  • Third-Party Fees: Costs for services not provided by the lender, such as appraisals, inspections, and title insurance.
  • Government Fees: Recording fees and transfer taxes mandated by your local municipality.
  • Prepaids: Upfront payments for property taxes and homeowners insurance to "seed" your escrow account.

How to Use (Steps)

  1. Purchase Price: Enter the agreed-upon price of the home.
  2. Loan Amount: Enter the amount you are borrowing (Price minus Down Payment).
  3. Fee Assumptions: Use our averages or enter exact figures from your lender's "Loan Estimate" (LE).
  4. Estimate: Review the total cost and the percentage it represents relative to your loan.

Example Calculation

Scenario: $400,000 Purchase with a $320,000 Loan (20% down).

• Lender Fees (1%): $3,200.
• Appraisal & Title: $2,300.
• Gov & Taxes: $1,200.
• Escrow Prepaids: $1,000.
• Total Closing Costs: $7,700 (approx. 2.4%).
• Total Cash Needed: $80,000 (Down Payment) + $7,700 = $87,700.

Why This Tool Is Accurate

Closing costs are often the biggest "surprise" for first-time buyers. This tool uses industry-standard categories to ensure you are budgeting for the full scope of local taxes, title protection, and lender requirements.

Limitations & Disclaimer

Fees vary significantly by state and lender. For example, transfer taxes in New York are much higher than in Texas. Disclaimer: This is an estimate only; always refer to your official Closing Disclosure (CD) before signing.

Frequently Asked Questions

What are typical closing costs?

In most U.S. markets, you should expect to pay between 2% and 5% of the purchase price in closing costs. On a $300k home, this equals $6,000 to $15,000.

Can I negotiate closing costs?

You can shop around for "Third-Party Services" like title insurance and home inspections. You can also ask the seller for a "Seller Concession" to pay some of these costs for you, or ask your lender for a "No-Closing-Cost Loan" (where the fees are rolled into a higher interest rate).

What is the difference between closing costs and down payment?

The down payment goes directly toward the equity in your home. Closing costs are the "fees for doing the deal" and do not increase your ownership stake. You need both to successfully close on a home.