Closing Costs Calculator
Closing costs are the fees paid at settlement when you purchase a home — typically 2%–5% of the purchase price. On a $400,000 home, that's $8,000–$20,000 in addition to your down payment.
Enter your purchase price and down payment to see a full estimate of closing costs broken down by category — lender fees, title costs, prepaid items, and total cash to close.
| Line Item | Estimate | Notes |
|---|
What Closing Costs Are — and Who Pays Them
Closing costs are fees paid to finalize a home purchase. They cover the lender's cost to process the loan, third-party services (title search, appraisal, attorney), government recording, and prepaid expenses like homeowner's insurance and property taxes held in escrow. Most closing costs are paid by the buyer; some (like transfer taxes) may be split or paid by the seller depending on local custom.
The Four Categories of Closing Costs
Lender fees cover the cost of processing, underwriting, and originating the loan. Origination fees (typically 0.5%–1% of the loan) and underwriting fees ($400–$900) are the largest. The appraisal ($400–$700) and credit report fee ($25–$50) are also lender-ordered. These are the most negotiable category — comparing Loan Estimates from 3+ lenders often reveals $1,000–$3,000 in fee differences.
Title costs include a title search (verifying clean ownership history, $150–$400), lender's title insurance (required, protects the lender, $500–$1,500), and owner's title insurance (optional but strongly recommended, covers you against defects in title discovered after closing, $500–$1,500). Title costs vary significantly by state and whether you shop for your own title company.
Prepaid items are not fees — they're expenses paid in advance. You'll prepay homeowner's insurance (first year upfront), prepay interest from closing day to month end, and fund an escrow account with 2–3 months of property taxes and insurance. These can add $3,000–$6,000 to cash at closing on a $400K home.
Government charges include recording fees ($50–$200) and transfer taxes — which vary enormously by state. Some states (Florida, Delaware, New York) have transfer taxes of 1%–2%. Others (Texas, Wyoming) have none. Always check your state's actual rate.
| Category | Low | High |
|---|---|---|
| Lender fees | $1,500 | $4,000 |
| Title costs | $1,200 | $3,500 |
| Prepaid items | $2,500 | $6,000 |
| Government charges | $200 | $8,000+ |
| Total | $5,400 | $21,500+ |
To see how closing costs affect your total mortgage picture, use the Mortgage Comparison Calculator to compare two loan offers including their fees. For the full rent vs. buy picture that includes closing cost amortization, try the Rent vs. Buy Calculator.
Frequently Asked Questions
How much are closing costs?
Typically 2%–5% of the purchase price. On a $400,000 home: $8,000–$20,000. The wide range is due to state transfer taxes (zero in some states, 2%+ in others), lender fee structures, and whether you buy discount points. Most buyers pay 2%–3% in markets without high transfer taxes.
What is included in closing costs?
Lender fees (origination, underwriting, appraisal), title costs (search, lender's and owner's title insurance), prepaid items (homeowner's insurance premium, prepaid interest, property tax escrow), and government charges (recording fees, transfer taxes). The Loan Estimate you receive within 3 days of applying breaks down every category.
Can closing costs be rolled into the mortgage?
Yes — either as a "no-closing-cost" loan at a higher rate, or by adding costs to the loan balance. Rolling $10,000 in costs into a 7% 30-year mortgage costs an additional ~$14,000 in interest over the life of the loan. It makes sense only if you plan to sell or refinance within 3–5 years before the interest costs exceed the upfront savings.
Who pays closing costs?
Buyers typically pay lender fees, title insurance, prepaid items, and recording fees. Sellers typically pay real estate commissions (5%–6%) and their share of transfer taxes. In buyer's markets, sellers sometimes agree to "seller concessions" — covering some of the buyer's closing costs — as part of negotiations.
Can I negotiate closing costs?
Yes — especially lender fees. Origination fees, underwriting fees, and discount points are negotiable. Getting Loan Estimates from 3+ lenders and asking each to match the best offer is the most effective tactic. Third-party fees (title, attorney) are harder to negotiate but you can shop for your own title company in most states. Government fees are fixed.
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