What this calculator does
Closing costs are the fees and prepaid items paid when a home sale closes, on top of the price. For a buyer they include the lender's charges, the appraisal, title insurance, government recording fees and taxes, and the first payments into escrow. Every box is editable, so you can copy the figures from your Loan Estimate and see the real total. The defaults are examples, not quotes, and the site has no live rates.
How it's calculated
Points = loan × points %
Prepaid interest = loan × rate ÷ 365 × days
Tax escrow = yearly property tax ÷ 12 × months
Total = lender fees + points + appraisal + title + recording/transfer taxes + prepaid interest + insurance + escrow + other
Cash to close = down payment + total closing costs − credits
One point is 1% of the loan amount, and lender credits work the same way in reverse. Prepaid interest covers the days from closing to the end of that month. Some lenders count interest on a 360-day year; this page uses 365.
Worked example
A $400,000 home with 20% down has a $320,000 loan at 6.5%. Lender fees are $1,500, the appraisal $600, title and settlement $2,500, recording and transfer taxes $1,200 and other items $500. Fifteen days of prepaid interest is 320,000 × 0.065 ÷ 365 × 15 = $854.79. A year of insurance is $2,000 and three months of a $4,800 tax bill is $1,200.
Cash to close = 80,000 + 10,354.79 = $90,354.79
Typical range
Freddie Mac says buyers should typically be prepared to pay 2% to 5% of the purchase price in closing fees. Here is what that range looks like:
| Price | 2% | 5% |
|---|---|---|
| $200,000 | $4,000 | $10,000 |
| $300,000 | $6,000 | $15,000 |
| $400,000 | $8,000 | $20,000 |
| $500,000 | $10,000 | $25,000 |
| $750,000 | $15,000 | $37,500 |
Transfer and recording taxes are set by states and local governments, so they vary widely from place to place, and who pays them depends on local custom and the contract. For your state, the Loan Estimate your lender gives you lists the actual figures under "Taxes and Other Government Fees".
Seller closing costs
Switch to Seller to add up a seller's side: commissions, the owner's title policy (where the seller customarily pays it), escrow or settlement fees, transfer tax, any credits you give the buyer, and the property tax you owe up to the closing date. For the money you actually walk away with after the mortgage payoff, use the home sale calculator.
Limitations
- Fees differ by lender, title company, county and state. Use your Loan Estimate and, three business days before closing, your Closing Disclosure.
- The escrow deposit depends on when taxes are due where you live; your lender works it out.
- Upfront mortgage insurance or loan guarantee fees aren't listed separately; add them to Other.