Closing Cost Calculator - What to Expect
Closing costs are 2-5% of the home price - often $6,000-$15,000+ on a typical US home. This calculator breaks down every fee so you can budget accurately and negotiate where possible.
Typical Closing Costs
| Item | Typical Cost |
|---|---|
| Loan origination fee | 0.5-1% of loan |
| Appraisal | $300-$700 |
| Home inspection | $300-$600 |
| Title search + insurance | $700-$1,500 |
| Credit report | $25-$50 |
| Recording fees | $50-$200 |
| Transfer tax | 0.5-2% of price |
| Prepaid interest | Depends on closing date |
| Escrow deposits | 2-6 months of taxes + insurance |
| HOA transfer fees | $100-$500 |
Worked Example: $400,000 Home, 20% Down
- Loan amount: $320,000
- Origination (1%): $3,200
- Appraisal: $500
- Inspection: $500
- Title: $1,200
- Recording: $150
- Transfer tax (1%): $4,000
- Prepaid interest: $800
- Escrow: $1,800
- Total closing costs: $12,150 (3.0%)
Who Pays What
Closing costs are split between buyer and seller, but customs vary by state and market:
- Buyer typically pays: Origination, appraisal, inspection, title insurance, recording, prepaid interest, escrow
- Seller typically pays: Real estate commission (5-6%), transfer tax (in some states), title search
- Negotiable: Seller concessions, closing cost credits, home warranty
How to Lower Closing Costs
- Negotiate the origination fee with your lender
- Shop title insurance (can vary 30-50%)
- Ask seller for closing cost credits
- Close near the end of the month to reduce prepaid interest
- Compare loan estimates from 3+ lenders
- Ask about no-cost or low-cost refinance options
- Waive escrow if you can manage taxes/insurance yourself
Frequently Asked Questions
How much are closing costs?
Typically 2-5% of home price. On a $400,000 home: $8,000-$20,000.
Can closing costs be rolled into the loan?
Sometimes - but it reduces your equity and increases interest paid. Best to pay out of pocket.
What is the Loan Estimate?
A 3-page form lenders must provide within 3 days of your application. Compare these across lenders.
Are closing costs tax-deductible?
Some are - origination points, property tax portion of escrow, and mortgage interest. Most other fees are added to your cost basis.
Can I negotiate closing costs?
Yes - origination fees, title insurance, and some third-party fees are negotiable.
What if closing costs exceed my budget?
Ask the seller for concessions, or look for first-time buyer assistance programs in your state.