Closing Cost Calculator
Estimate the closing costs for your home purchase or refinance — see an itemized breakdown of lender fees, title costs, and prepaid items.
Typical Closing Cost Items for a Home Purchase
| Fee Item | Typical Range | Negotiable? |
|---|---|---|
| Loan origination fee | 0.5–1% of loan | Yes |
| Appraisal fee | $400–$700 | Sometimes |
| Credit report fee | $30–$50 | No |
| Title search | $300–$600 | Sometimes |
| Owner's title insurance | $500–$1,500 | Yes |
| Attorney / settlement fee | $500–$1,500 | Yes |
| Transfer taxes | 0.1–2% of price | No (gov't) |
| Prepaid insurance (12 mo.) | $800–$2,500 | Shop around |
| Property tax escrow (2–6 mo.) | Varies | No |
Costs vary significantly by state, lender, and loan type. Always compare Loan Estimates from multiple lenders.
Frequently Asked Questions
How much are closing costs when buying a home?
Closing costs typically range from 2–5% of the purchase price. On a $400,000 home, expect $8,000–$20,000. Costs vary significantly by state and loan type. States with the highest closing costs: Hawaii, New York, and Delaware (high taxes and transfer fees). Lowest: Missouri, Indiana, and South Dakota. Closing costs include two broad categories: (1) Lender fees (origination, underwriting, appraisal, credit report) — typically 1–2% of loan. (2) Third-party fees (title search, title insurance, attorney, recording fees, prepaid interest, escrow setup) — typically 1–3% of purchase price.
Can closing costs be rolled into the mortgage?
Generally no — closing costs cannot be added to a purchase mortgage. You must pay them out of pocket at closing (in addition to your down payment). However: (1) Seller concessions: you can negotiate for the seller to pay some or all of your closing costs, typically up to 3–6% of purchase price (depending on loan type and down payment). (2) Lender credits: the lender raises your rate slightly in exchange for credit toward closing costs — you pay less cash upfront but more over the life of the loan. (3) For refinances, closing costs can often be rolled into the new loan balance.
What is owner's title insurance and do I need it?
Title insurance protects you against claims on your property's ownership history — undiscovered liens, errors in public records, forgery, or undisclosed heirs. There are two types: (1) Lender's title insurance: required by virtually all mortgage lenders, protects the lender. Typically $500–$1,500. (2) Owner's title insurance: optional but strongly recommended, protects you as the buyer. Typically $500–$1,500. It's a one-time premium paid at closing that provides lifetime protection. The cost is generally 0.5–1% of the purchase price. Given the potential cost of a title dispute, most real estate attorneys recommend owner's title insurance.
What are prepaid items at closing?
Prepaid items are not fees — they are payments you make in advance for ongoing costs of homeownership. You'll typically prepay: (1) Homeowner's insurance premium: 12 months paid upfront (lender requirement). (2) Property tax escrow: 2–6 months of property taxes deposited into escrow. (3) Prepaid mortgage interest: interest from your closing date to the end of the month (to start your first full payment cycle correctly). (4) Initial escrow cushion: 2 months of payments the lender holds as a reserve. Total prepaid items typically run $2,000–$6,000 depending on your property taxes, insurance, and closing date.
What is the Loan Estimate and Closing Disclosure?
Under RESPA (Real Estate Settlement Procedures Act), lenders must provide a Loan Estimate within 3 business days of receiving your application, showing estimated closing costs. Within 3 business days of closing, you receive the Closing Disclosure with final costs. Compare the two carefully — some fees can change (loan origination, appraisal) while others cannot change at all (transfer taxes, fees for required third-party services). If your Closing Disclosure shows significantly higher costs than your Loan Estimate, you have the right to delay closing and request an explanation. This is a protected consumer right.