Closing Cost Calculator
Estimate your home closing costs with our comprehensive calculator. Get a detailed breakdown of lender fees, third-party services, and prepaid items to understand total cash needed at closing and avoid surprises.
Purchase price of the home
Mortgage loan amount (home price - down payment)
Lender fee as percentage of loan amount (default: 1%)
Professional home appraisal cost (default: $500)
Title insurance premium (default: 0.5% of home price)
Home inspection fee (default: $400)
Government recording fees (default: $150)
Legal fees for closing (default: $800)
Prepaid taxes, insurance, interest (default: calculated)
What are closing costs?
Closing costs are fees and expenses paid when finalizing a real estate transaction. They typically range from 2-5% of the home price and include loan origination fees, appraisal, title insurance, attorney fees, recording fees, and prepaid items like taxes and insurance.
Who pays closing costs, buyer or seller?
Both buyers and sellers pay closing costs, but different ones. Buyers typically pay lender fees, appraisal, title insurance, and prepaid items. Sellers usually pay realtor commissions, transfer taxes, and sometimes contribute to buyer's closing costs as negotiated.
How much are closing costs on average?
Closing costs typically range from 2-5% of the home purchase price. On a $300,000 home, expect $6,000-$15,000 in closing costs. Exact amounts vary by location, loan type, lender, and negotiated terms.
Can closing costs be rolled into the mortgage?
Sometimes. With a no-closing-cost mortgage, the lender covers costs but charges a higher interest rate. You can't directly add closing costs to your loan amount, but you may be able to finance them if the seller agrees to pay or credits them.
What is a loan origination fee?
A loan origination fee is charged by the lender for processing your mortgage application. It typically ranges from 0.5-1% of the loan amount. This fee covers underwriting, document preparation, and administrative costs of creating your loan.
What are prepaid closing costs?
Prepaid costs are expenses paid in advance at closing, including homeowners insurance premiums, property taxes, and mortgage interest from closing date to month-end. You may also prepay into an escrow account for future tax and insurance payments.
What is title insurance and why do I need it?
Title insurance protects you and your lender from claims against your property's ownership. It covers issues like unpaid liens, forgery, or errors in public records. Owner's title insurance is paid once at closing and lasts as long as you own the home.
Are closing costs negotiable?
Yes, many closing costs are negotiable. You can shop for services like title insurance and home inspections. You can also negotiate with the seller to pay some closing costs (seller concessions) or ask your lender to waive or reduce certain fees.
What is the difference between closing costs and down payment?
Down payment is the portion of the home price you pay upfront (typically 3-20%). Closing costs are additional fees for processing the transaction. Both are paid at closing, but they're separate expenses. For example, on a $300,000 home with 10% down, you'd pay $30,000 down payment plus $6,000-$15,000 in closing costs.
Do I get a Loan Estimate of closing costs?
Yes, lenders must provide a Loan Estimate within three business days of your application. This standardized form details estimated closing costs, loan terms, and monthly payments. You'll receive a final Closing Disclosure at least three days before closing with actual costs.
What are discount points?
Discount points are optional fees paid to lower your interest rate. One point equals 1% of the loan amount and typically reduces the rate by 0.25%. Paying points makes sense if you plan to keep the loan long enough to recoup the upfront cost through lower monthly payments.
Can sellers contribute to buyer closing costs?
Yes, seller concessions allow sellers to pay part of the buyer's closing costs. Conventional loans allow up to 3-9% of the purchase price (depending on down payment), FHA loans allow up to 6%, and VA loans allow up to 4%. This is negotiated in the purchase agreement.
What closing costs are tax deductible?
Some closing costs are tax deductible in the year of purchase: mortgage interest, property taxes, and discount points (if you meet IRS requirements). Other costs like appraisal fees, title insurance, and attorney fees are not deductible. Consult a tax professional for your specific situation.