How to use the closing cost calculator
- 1 Enter the home price and your down payment.
- 2 Enter the origination fee, points, appraisal, title and settlement costs (the defaults are typical).
- 3 Enter transfer taxes, your mortgage rate, property tax and insurance.
- 4 Subtract any seller credits and read your closing costs and cash to close.
Worked example
A $400,000 home with 20% down at 6.5%, a 1% origination fee, $700 appraisal, 0.5% title, $1,500 settlement, 0.5% transfer taxes, $4,400 property tax and $1,800 insurance. Lender fees are $3,200, third-party costs $4,200, transfer taxes $2,000 and prepaids $4,055 (15 days' interest, a year of insurance and escrow reserves). Closing costs total $13,454.79, 3.4% of the price, and the cash to close with the $80,000 down payment is $93,454.79.
Cutting closing costs
- Compare Loan Estimates from at least three lenders.
- Shop for title and settlement services where allowed.
- Ask for seller credits in your offer.
- Close late in the month to reduce prepaid interest.
Plan the down payment with the Down Payment Calculator, check points with the Mortgage Points Calculator, and see the payment with the Mortgage Calculator.
Features
Every category
Lender, third-party, government fees and prepaids, as on your Loan Estimate.
Escrow included
Prepaid interest, a year of insurance and escrow reserves.
Cash to close
Down payment plus closing costs, minus seller credits.
When to use it
Budgeting to buy
Add closing costs to your savings goal. See your down payment with the Down Payment Calculator.
Comparing lenders
Compare origination fees and points. Check whether points pay off with the Mortgage Points Calculator.
Negotiating with the seller
See how much a seller credit covers.
Checking your payment
See the monthly cost in the Mortgage Calculator.
Related Home and Auto tasks
Frequently asked questions
How much are closing costs?
Usually 2% to 5% of the home price for buyers. On a $400,000 home with 20% down, the example comes to about $13,455, or 3.4% of the price.
What is included in closing costs?
Lender fees (origination and points), the appraisal and credit report, title insurance and search, settlement or attorney fees, transfer taxes and recording fees, and prepaid items such as interest, insurance and escrow reserves.
What are prepaid costs?
Costs paid in advance at closing: interest from closing to the end of the month, the first year of homeowners insurance and an initial deposit into your escrow account for property tax and insurance.
Who pays transfer taxes?
It depends on the state and local custom. In some states the seller pays, in others the buyer, and some split it. A few states have no transfer tax.
Can the seller pay my closing costs?
Yes, through seller concessions or credits, up to limits set by the loan type: often 3% to 9% on conventional loans, 6% on FHA and 4% on VA.
Can I roll closing costs into my loan?
Not on a purchase, but a no-closing-cost mortgage lets the lender pay them in exchange for a higher rate. On a refinance, costs can often be added to the loan.
What is the difference between the Loan Estimate and the Closing Disclosure?
The Loan Estimate is sent within 3 business days of applying and lists expected costs. The Closing Disclosure is sent at least 3 business days before closing with the final figures.
Are closing costs tax-deductible?
Most are not. Mortgage points and prepaid mortgage interest may be deductible if you itemize; other costs are added to your home's cost basis.
How can I lower closing costs?
Compare Loan Estimates from several lenders, shop for title insurance and settlement services where allowed, negotiate seller credits and close near the end of the month to reduce prepaid interest.
What is cash to close?
The total you bring to closing: your down payment plus closing costs, minus your earnest money deposit and any seller or lender credits.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
· Last updated
· How we check our tools
· Report a problem