Closing Costs Calculator
FAQ
Your questions answered.
What are closing costs and why do I have to pay them?
Closing costs are the fees and expenses required to finalize a home purchase. They cover services like loan processing, title verification, government recording of the new deed, and prepaid expenses for insurance and taxes. They exist because multiple parties — lenders, title companies, escrow agents, and local governments — are all involved in transferring property ownership, and each charges for their role in the transaction.
How much are closing costs on a home purchase?
Typically 2–5% of the purchase price, though it varies by location and loan type. On a $950,000 home, the mid estimate is approximately $25,187 — about 2.7% of the purchase price. On a $1,100,000 home, the mid estimate runs closer to $29,377. Enter your specific numbers for an accurate figure.
What are prepaids and why are they so large?
Prepaids are upfront deposits for ongoing homeownership expenses — property taxes, homeowner's insurance, and mortgage interest. Unlike fees paid for services, prepaids go into your escrow account and pay those bills when they come due. You are funding an account, not spending the money outright — but it is real cash you need at closing and is consistently the biggest surprise for first-time buyers.
Are any closing costs negotiable?
Yes. Lender fees — origination, processing, and underwriting charges — vary significantly between lenders and are worth shopping. Government fees like recording charges are fixed. Transfer tax is typically seller-paid but negotiable, which is why the calculator includes it as a toggle. Seller-paid closing costs — where the seller covers a portion of your costs as part of the deal — are also a common negotiating point, particularly in slower markets.
What does "Loan type" change in the estimate?
Quite a bit. FHA loans include an upfront mortgage insurance premium of 1.75% of the loan amount — on an $880,000 loan that is $15,400 added to your closing costs. VA loans cap or eliminate certain lender fees but include a funding fee for most borrowers. Conventional and jumbo loans have standard lender fee structures. Selecting the correct loan type is one of the most important inputs for an accurate estimate.
How to Use This Calculator
The calculator has four sections: Loan Details, Property & Location, Location Alerts, and Profile & Negotiated Items.
Loan Details
Purchase price ($): The agreed-upon price for the home.
Down payment ($): Enter your down payment. The percentage calculates automatically. Your loan amount — the purchase price minus your down payment — is displayed below and updates automatically. You do not enter it directly.
Loan type: Choose Conventional, FHA, VA, or Jumbo. This matters — different loan types carry different fees. FHA loans include an upfront mortgage insurance premium. VA loans limit or eliminate certain lender charges. Select the type that matches your financing.
Discount points is an optional section you can expand. Points are upfront fees paid to your lender in exchange for a lower interest rate. One point equals 1% of the loan amount. Most buyers skip this — only expand it if you are actively considering buying down your rate.
Property & Location
Property type: Choose SFR (a standard single-family home), Condo, PUD, or Multi-family. Condos and multi-family properties can carry additional fees.
County and City: Select your target location. The calculator uses this to automatically pull in the local property tax rate, transfer tax, and recording fees — all of which vary by county and city and are displayed beneath your selection.
Location Alerts
After you select your county and city, the calculator may show location-specific alerts in this section. These are automatically generated based on your location and flag local conditions that could affect your costs. Each alert includes an explanation when it appears.
Profile & Negotiated Items
These four toggles adjust the estimate based on your situation. Toggle on any that apply.
First-time homebuyer: May reduce certain recording fees and flags eligibility for state assistance programs.
New construction: Indicates the builder may cover select closing costs. Confirm which ones in your purchase contract before assuming they apply.
Buyer pays transfer tax: Transfer tax is typically paid by the seller, but it is negotiable. Toggle this on if you have agreed to cover it as part of your deal.
HOA present: If the property has a homeowners association, toggle this on. HOA transfers typically add $250–$500 in fees at closing.
What the Results Show You
Estimate Range gives you three numbers — Low, Mid, and High — as both a dollar amount and a percentage of the purchase price. Closing costs generally run 2–5% of the purchase price, but the real range depends on your loan type, location, and what gets negotiated. The calculator shows the full 0–7% spectrum so you can see where your estimate sits.
Cost Breakdown splits your total into four categories. Hover over the chart for a detailed look at each one.
Lender Fees are charges from your mortgage lender — origination, underwriting, and processing fees. These vary the most between lenders and are the most negotiable part of closing costs. Getting multiple loan estimates is the most effective way to reduce this number.
Title & Escrow covers two things: verifying that the seller legally owns the home and can transfer it to you (title search and insurance), and the escrow company that manages the transaction and holds funds until closing. Think of escrow as the neutral third party that makes sure everything happens correctly and in the right order.
Government & Recording Fees are set by local and state governments — transfer taxes, recording fees to officially register the deed, and any applicable city or county charges. These are generally fixed and non-negotiable.
Prepaids & Reserves is typically the largest category and the most misunderstood. These are not fees for services — they are money collected upfront to fund your escrow account. This includes your first year of homeowner's insurance, prepaid mortgage interest from your closing date to the end of the month, and an initial deposit into your property tax reserve. You are not losing this money. It sits in your escrow account and is used to pay those bills when they come due. But it is real cash you need at closing, so plan for it.
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