Closing Cost Calculator
Beyond the down payment, buying a home means closing costs. Get an itemized estimate — origination, title, escrow, prepaids — and see the total cash you'll need at the closing table.
- Origination fee$3,200.00
- Discount points$0.00
- Appraisal$550.00
- Credit report$75.00
- Title search, exam & insurance$1,900.00
- Recording & transfer fees$250.00
- Prepaid interest (15 days)$854.79
- Homeowners insurance escrow (2 mo)$233.33
- Property tax escrow (2 mo)$733.33
- Total due in cash$7,796.46
Estimates from national averages — your lender's Loan Estimate is the binding number. FHA/VA/USDA upfront fees are usually financed into the loan rather than paid in cash. Seller credits and local transfer taxes aren't included.
How the math works
Closing costs fall into three buckets. First, lender charges: the origination fee (often around 1% of the loan), underwriting and processing fees, the credit report, and any discount points you choose to pay. This bucket is the most negotiable — it's the lender's own margin.
Second, third-party services: the appraisal ($300–$600), title search plus lender's title insurance (and optional owner's title insurance), recording fees charged by the county, and sometimes a survey. You can shop for many of these; your lender's Loan Estimate must list which ones.
Third, prepaids and escrow — money that isn't a fee at all, just timing. Prepaid interest covers the days from closing to month-end (interest accrues daily). Escrow deposits pre-fund your property tax and homeowner's insurance impound account so the lender can pay those bills, and your first year's insurance premium is collected here too.
Loan programs add their own line: FHA's 1.75% upfront mortgage insurance premium, the VA funding fee (2.15% for first-time use), and USDA's 1% guarantee fee. These are usually financed into the loan rather than paid in cash, which is why the calculator shows them separately. Your cash to close is the down payment plus the cash costs, minus earnest money already deposited and any seller credits.
Worked example
$400,000 purchase, 10% down ($40,000), $360,000 conventional loan at 6.75%, closing on the 10th of the month (20 days of prepaid interest):
Origination (1%): $3,600. Appraisal: $600. Credit report: $75. Title search and insurance: $1,800. Recording: $250. Prepaid interest — $66.58 per day × 20 days: $1,332. Escrow deposits — six months of property tax: $2,500; two months of insurance: $300.
Total closing costs: $10,457, or 2.6% of the price — squarely in the typical 2–5% range. Total cash to close: the $40,000 down payment plus $10,457, for $50,457 (before subtracting earnest money or seller credits). The prepaids and escrow alone are $4,132 — nearly 40% of the total — which is why "fees" feel bigger than the lender's actual charges.
What to watch for
- Shop the lender charges, not the total. Origination and underwriting vary the most between lenders — get three Loan Estimates and compare Section A line by line.
- Mind the closing date. Closing on the 5th means ~25 days of prepaid interest; closing on the 28th means ~3. Same loan, roughly $1,400 of difference on a $360,000 loan at 6.75%.
- Question junk fees. Courier fees, email fees, and "processing" stacked on top of underwriting — ask what each one is for and push back on duplicates.
- Seller credits have caps. Conventional loans typically allow 3–9% depending on down payment; FHA caps at 6%. Credits above the cap can't be applied — negotiate within the rules.
- The Closing Disclosure is the final word. You must receive it 3 business days before closing. Compare every line to the Loan Estimate, and halt the closing if lender charges moved.
Frequently asked questions
How much are closing costs on a house?
Typically 2–5% of the home price — on a $400,000 home, that's roughly $8,000–$20,000 on top of the down payment. The exact total depends on the loan type, points, local taxes, and how much the lender charges in origination fees.
What's included in closing costs?
Lender charges (origination, discount points, credit report), third-party services (appraisal, title search and insurance, recording fees), and prepaids (daily interest from closing to month-end, plus escrow deposits for taxes and insurance). This calculator itemizes each one.
Do FHA, VA, and USDA loans have extra closing costs?
They have upfront funding fees — FHA's 1.75% mortgage insurance premium, VA's funding fee (2.15% first use), USDA's 1% guarantee fee — but these are usually financed into the loan rather than paid in cash at closing. The calculator shows them separately so your cash-to-close stays accurate.
Is this the same as my Loan Estimate?
No — this is an estimate from national averages to help you budget. Within three business days of applying, your lender must send a Loan Estimate with binding figures, and many line items (like title and recording) vary by state and county. Use this to plan; use the Loan Estimate to decide.
Who pays closing costs — the buyer or the seller?
Mostly the buyer, but sellers typically pay the real estate agent commissions (technically separate from closing costs) and may agree to seller concessions — credits toward the buyer's costs, usually capped at 3–9% of the price depending on the loan type. Everything is negotiable in the purchase contract.
Can I roll closing costs into my mortgage?
Some of them. Lender credits ('no closing cost' loans) cover costs in exchange for a higher rate, and FHA/VA/USDA upfront funding fees are commonly financed into the loan. But prepaids and escrow generally still need cash at the table — and financing costs means paying interest on them for 30 years.
Why did my cash to close change from the Loan Estimate?
Some line items can legally change: prepaid interest shifts with your exact closing date, and tax/insurance escrow depends on due dates. But lender origination charges have zero tolerance — if those moved, your lender owes you an explanation and possibly a cure. Compare the Loan Estimate and Closing Disclosure line by line.
Do I pay closing costs when I refinance?
Yes — a refinance is a new loan, so expect 2–5% of the loan amount again (often on the lower end, since there's no purchase involved and some title work can be reused). That's why the refinance break-even matters: divide the costs by the monthly savings to see how many months until it pays off.