Closing Cost Calculator

What Are Closing Costs?

Closing costs are the fees and prepayments required to finalize a home purchase. They typically range from 2% to 5% of the purchase price, depending on the state, lender, loan type, and property.

Closing costs include:

• Lender charges
• Appraisal and third-party fees
• Title insurance and escrow
• Government & recording fees
• Prepaid property taxes
• Homeowners insurance
• Per-diem interest
• Escrow reserve deposits

This calculator provides a comprehensive estimate so you know exactly how much you may owe at closing.

How This Closing Cost Calculator Works

The calculator automatically estimates:

1. Loan-dependent fees

Including:

• Origination fee (%)
• Discount points
• Lender title policy
• Escrow fees

These vary by loan amount and lender pricing.

2. Third-party service charges

Typical services required during home purchase, such as:

• Appraisal
• Credit report
• Survey or other inspections

3. Government and recording costs

These vary by state and locality.

Examples include:

• Transfer taxes
• Recording fees
• Stamps and document fees

4. Prepaids

These are upfront payments for ongoing housing expenses:

• Property taxes
• Homeowners insurance
• Mortgage insurance
• Per-diem interest (from closing date to first payment date)

5. Escrow reserves

Lenders often require an initial deposit to ensure your tax and insurance bills can be paid on time.

6. Cash needed at closing

Based on:

Down payment
+ Total closing costs
+ Prepaids & escrows
= Total cash required to close

This amount tells you how much money you must bring to the closing table.

What’s Included in Closing Costs?

Lender Fees

Charged by your mortgage lender to process, underwrite, and fund the loan.

Third-Party Services

Fees from independent professionals required to complete the mortgage process.

Title & Escrow

Covers:

• Title search
• Title insurance policies
• Notary
• Closing agent fees

Government & Recording

State and county charges for legally transferring property ownership.

Prepaids & Escrows

Upfront charges that are not technically closing costs, but still required at closing.

How Much Are Typical Closing Costs?

Closing costs vary widely, but general ranges are:

Home Price	Typical Closing Costs	Notes
$200,000	$4,000–$7,000	Lower taxes, fewer third-party fees
$400,000	$8,000–$14,000	Most common range
$600,000+	$12,000–$20,000+	Higher taxes & title fees

Your actual costs depend on:

• Location (state + county)
• Property type
• Loan type (FHA, VA, Conventional)
• Down payment size
• Service provider fees

How to Reduce Closing Costs

Several strategies can help lower your upfront expenses:

1. Shop for lenders

Origination fees and discount points can vary significantly.

2. Ask about seller concessions

Sellers may contribute toward closing costs depending on your loan program.

3. Compare title & escrow companies

In some states, buyers can choose their own title provider.

4. Avoid unnecessary discount points

Only buy points if you plan to keep the loan long enough to break even.

Who Pays Closing Costs – Buyer or Seller?

Typically:

• Buyer pays lender fees, appraisal, title insurance (owner’s choice varies by state), government fees, prepaids, and escrow deposits.
• Seller may cover transfer taxes in some states (varies by region).
• Seller credits can cover some or all buyer closing costs depending on contract terms.

The calculator helps you estimate the buyer’s portion.

Frequently Asked Questions (FAQs)