Closing Cost Calculator
Estimate all the costs associated with buying a home. Calculate lender fees, title costs, prepaid items, and government taxes to know exactly how much cash you will need at closing.
Closing Cost Calculator
Estimate all costs associated with buying a home
Purchase Details
Credits from seller to help cover closing costs
Estimated Costs
Total Cash Needed at Closing
Closing costs are 3.5% of home price
Closing costs are 4.4% of loan amount
What Are Closing Costs?
Closing costs are the fees and expenses you pay to finalize your mortgage and complete the home purchase. They typically range from 2-5% of the loan amount and cover services like appraisals, title insurance, and prepaid taxes.
Typical Closing Costs
Buyer Pays: 2-5% of loan
On a $320,000 loan: $6,400 - $16,000 in closing costs
Seller Pays: 6-10% of price
Mostly agent commissions, plus some fees and taxes
Types of Closing Costs
Lender Fees
Fees charged by your mortgage lender to process and underwrite your loan.
- Origination fee (0.5-1% of loan)
- Application fee ($300-$500)
- Credit report fee ($30-$50)
- Appraisal fee ($400-$600)
- Underwriting fee ($500-$1,000)
- Discount points (optional)
Title & Settlement Fees
Fees for title search, insurance, and closing the transaction.
- Title search ($200-$500)
- Title insurance (0.5-1% of loan)
- Settlement/closing fee ($400-$700)
- Recording fees ($100-$250)
- Attorney fees (varies by state)
Prepaid Items
Items paid upfront that are not technically fees.
- Prepaid interest (closing to month-end)
- First year homeowners insurance
- Escrow for property taxes (2-3 months)
- Escrow for insurance (2-3 months)
- Mortgage insurance premium (if applicable)
Government Fees & Taxes
Fees required by government entities.
- Transfer taxes (varies by state/county)
- Recording fees
- Mortgage registration tax (some states)
- Document stamps
Closing Costs by State
Closing costs vary significantly by state due to different taxes and requirements:
| State | Avg. Closing Costs | % of Home Price | Notes |
|---|---|---|---|
| New York | $16,849 | 4.2% | High transfer taxes |
| California | $7,953 | 2.0% | Higher home values |
| Texas | $4,548 | 1.9% | No transfer tax |
| Florida | $8,551 | 2.9% | Doc stamps apply |
| Indiana | $1,909 | 1.1% | Low taxes & fees |
Ways to Reduce Closing Costs
1. Negotiate Seller Credits
Ask the seller to pay part of your closing costs. This is common in buyer markets or when the home needs repairs.
2. Shop for Services
You can choose your own title company, inspector, and surveyor. Get multiple quotes to find the best prices.
3. Compare Lenders
Lender fees vary significantly. Get Loan Estimates from multiple lenders and compare the total closing costs.
4. Ask About No-Closing-Cost Loans
Some lenders offer to roll closing costs into your loan in exchange for a slightly higher interest rate.
5. Close at End of Month
Prepaid interest is calculated from closing date to month-end. Closing later in the month reduces this cost.
6. Look for First-Time Buyer Programs
Many states and local governments offer closing cost assistance for first-time homebuyers.
When Are Closing Costs Paid?
1-3% deposit when offer is accepted, credited at closing
Final statement of all costs you must review
Bring certified check or wire funds to title company
Frequently Asked Questions
Can closing costs be rolled into the loan?
Yes, some lenders offer no-closing-cost loans that add the fees to your loan balance or charge a higher interest rate. While this reduces upfront costs, you will pay more over the life of the loan.
What is the difference between prepaids and closing costs?
Closing costs are fees for services (appraisal, title, etc.). Prepaid items are advance payments for recurring costs like insurance and property taxes that will be due whether you buy a home or not.
Are closing costs tax deductible?
Most closing costs are not deductible. However, you may be able to deduct prepaid property taxes and mortgage interest. Discount points are also deductible if you itemize.
How much can the seller contribute to closing costs?
Seller contribution limits depend on your loan type and down payment: Conventional (3-9% based on down payment), FHA (up to 6%), VA (up to 4%), USDA (up to 6%).
What if my actual closing costs are higher than the estimate?
Many fees on the Loan Estimate have tolerance limits. Lender fees generally cannot increase, while some third-party fees can increase by up to 10% total. If costs exceed limits, the lender must refund the difference.