Closing Cost Calculator
What you'll pay at closing as a buyer
- Lender feesorigination, points, credit report
- $1,850
- Third-party feesappraisal, title, settlement, inspection
- $3,850
- Government feesrecording, transfer tax
- $150
- Prepaids and escrowinterest, insurance, tax deposits
- $4,162
- Down payment
- $40,000
- Cash to closedown payment + closing costs
- $50,012
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Estimate, not a loan offer. Your Loan Estimate lists your actual costs. We may earn a commission when you click. It does not change your estimate. How we calculate · How we make money
| Item | Type | Amount |
|---|---|---|
| Origination fee | Lender | $1,800 |
| Credit report | Lender | $50 |
| Appraisal | Third party | $600 |
| Title insurance | Third party | $2,000 |
| Settlement or attorney fee | Third party | $800 |
| Home inspection | Third party | $450 |
| Recording fees | Government | $150 |
| Prepaid interest | Prepaids and escrow | $962 |
| First year of homeowners insurance | Prepaids and escrow | $1,800 |
| Property tax escrow deposit | Prepaids and escrow | $1,100 |
| Insurance escrow deposit | Prepaids and escrow | $300 |
| Total closing costs | $10,012 |
Lender fees are the part you can shop
Origination fees, points and rates vary by lender. Compare offers, then line up each Loan Estimate side by side.
Free to compare. No obligation.
What buyer closing costs include
Closing costs are the fees and upfront payments due when you close on a home, on top of your down payment. Buyers typically pay about 2% to 5% of the price. This calculator groups them the way your Loan Estimate does:
- Lender fees: origination or underwriting fees, any discount points you buy to lower the rate, and the credit report.
- Third-party fees: appraisal, title insurance, the settlement agent or attorney, and inspections.
- Government fees: recording the deed and mortgage, and transfer taxes where the buyer pays them.
- Prepaids and escrow: interest from closing to month-end, the first year of homeowners insurance, and the starting deposit into your escrow account for tax and insurance.
With the example numbers, a $400,000 home with 10% down comes to about $10,000 in closing costs, about 2.5% of the price, so you'd need about $50,000 in cash to close. Prepaids aren't really fees, since they pay costs you'd owe anyway, but you still need the cash on closing day.
How to lower closing costs
- Compare Loan Estimates from at least three lenders. Lender fees are where offers differ most.
- Ask the seller for a closing cost credit, especially when homes are sitting on the market.
- Shop the services your Loan Estimate says you can shop for, such as title and settlement.
- Close near the end of the month to reduce prepaid interest. It lowers the cash due at closing, not the total cost.
- Look for state or local down payment assistance programs, many of which also cover closing costs.
Fees vary a lot by state, lender and loan type. Use this to plan, then check every line against your official Loan Estimate and Closing Disclosure.
Frequently asked questions
How much are closing costs for a buyer?
Buyers commonly pay about 2% to 5% of the price. On a $400,000 home with 10% down, the example above comes to about $10,000, or 2.5%, including prepaid interest, the first year of insurance and the escrow deposit. Your lender's Loan Estimate lists your actual costs.
Who pays closing costs, the buyer or the seller?
Both pay their own. Buyers pay lender fees, the appraisal, the lender's title policy and prepaids; sellers usually pay their agent's commission and some local taxes and fees. Who pays the owner's title policy and transfer tax depends on the state and the contract, and sellers can agree to cover part of the buyer's costs.
Are closing costs tax deductible?
Most aren't deductible in the year you buy. Points, prepaid mortgage interest and property taxes paid at closing may be deductible if you itemize, and some other costs are added to your home's cost basis, which can lower taxes when you sell. Check with a tax professional.
Can closing costs be rolled into the loan?
On a purchase, usually not directly, but you can ask the seller for a credit or take a slightly higher rate in exchange for a lender credit. On a refinance, closing costs can often be added to the new loan.