Closing Cost Calculator
Closing costs typically run 2–5% of the purchase price, on top of your down payment. This calculator itemizes every line you'll see on a Loan Estimate so there are no surprises at the closing table.
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Estimate
Closing costs ≈ 4.66% of purchase price. Local fees vary; your Loan Estimate is the source of truth.
What's actually in your closing costs
Federal law requires every lender to give you a 3-page Loan Estimate within 3 business days of a complete application. Page 2 itemizes every fee in three columns: services you can't shop for (the lender's own fees), services you can shop for (title, settlement, survey, pest), and prepaids / initial escrow. Three days before closing you get a Closing Disclosure that must match the Loan Estimate within tight tolerances or the lender has to fix it.
Lender fees
Origination is the lender's profit on funding the loan, usually 0.5–1% of the loan amount. Discount points are optional — each point is 1% of the loan and typically buys down the rate by ~0.25%. Appraisal (~$500–$800), credit report (~$50–$100), and underwriting / processing fees ($400–$900) are mostly fixed.
Title and settlement
Lender's title insurance protects the bank against ownership disputes; it's required. Owner's title insurance protects you — it's optional but a one-time premium for permanent protection (skip it only if you fully understand the risk). Settlement / escrow fees pay the attorney or title company running the closing. Recording fees and a survey (sometimes required) round out the bucket.
Transfer taxes
Some states (Washington, Delaware, New York, Pennsylvania) hit you with 1–2%+ of the purchase price in transfer or recordation tax. Others (Texas, Wyoming, Oregon, Idaho) charge effectively nothing. This single line item can swing closing costs by tens of thousands of dollars between states.
Prepaids and initial escrow
These aren't really "fees" — they're future bills the lender wants funded up front. You'll pay 12 months of homeowner's insurance, 2 months of insurance cushion, a few months of property tax cushion, and per-diem interest from your closing date to the end of the month. They're real money out the door, but you'd be paying them anyway.
How to lower closing costs
- Shop title insurance and settlement — these are the biggest fees you're allowed to shop, and quotes vary widely.
- Ask for a lender credit. In exchange for a slightly higher rate (often +0.125%), the lender pays some or all of your closing costs.
- Negotiate seller concessions. Conventional loans allow up to 3–9% of price in seller-paid closing costs depending on down payment; FHA allows up to 6%; VA up to 4%.
- Time your closing late in the month to minimize prepaid interest.
- Compare APRs, not just rates. The APR on page 3 of the Loan Estimate bakes in most fees and is the cleanest way to compare lenders.