Buying
Closing Cost Calculator.
Title, escrow, lender fees, appraisal, prepaid taxes and insurance — all the line items between you and the keys, adjusted for your state.
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Closing costs in plain terms
2–5% of purchase price, sitting between you and the keys.
Closing costs are the fees and prepaid items that change hands at closing — separate from the down payment. They typically run 2% to 5% of the purchase price for buyers, with most of that going to lender fees, title and escrow services, and prepaid taxes and insurance.
The five buckets
- Lender fees — origination, application, underwriting. Negotiable. Different lenders structure these very differently; the same loan can cost $1,200 at one lender and $2,800 at another. Always shop the loan estimate.
- Title and escrow — title insurance (one-time, protects against ownership disputes), escrow service (handles the closing transaction), recording fees. Vary substantially by state. New York is highest due to mansion and transfer taxes; California Title fees are the lowest.
- Appraisal and inspection — required by the lender (appraisal) and strongly recommended for the buyer (home inspection). $400–$600 each, paid before closing.
- Discount points — optional payments to buy down your rate. One point = 1% of loan, typically reduces rate by 0.25 percentage points. Worth it if you keep the loan long enough.
- Prepaid items — property tax (typically 3 months held in escrow at closing) and homeowners insurance (typically 12 months paid upfront). Not really a cost — you'd pay these anyway — but they hit at closing.
Seller credits
Sellers sometimes offer to pay a portion of buyer closing costs as part of the negotiation. This is most common in slower markets or with motivated sellers. Lender rules cap seller credits — typically 3% of price for owner-occupied conventional loans, 6% for FHA. The Cash to Close calculator handles seller credits explicitly.
How to keep closing costs down
- Shop three lenders. Loan estimates are standardized — directly compare lender fees, origination, and rate. The cheapest loan estimate often comes from a lender you weren't already considering.
- Negotiate seller credits. In a buyer's market, asking for 1–2% of price in seller credits is normal. The seller usually prefers a credit over a price reduction because it preserves comp value for future sales in the neighborhood.
- Question discount points. Points are useful but oversold. Compute the breakeven: cost of points / monthly savings = months to break even. Hold longer than that and they're worth it.
- Decline lender's title insurance markup. Title insurance is required, but you can usually shop it independently and save a few hundred dollars.
Quick rule: if a lender's loan estimate shows lender fees over $4,000 on a standard 30-year fixed loan, ask them to walk you through every line. Some are reasonable; some are pure margin.
FAQ
Common questions about closing cost calculator.
Is 2.5% a realistic estimate for closing costs?
It's a good starting point for owner-occupied purchases on a 30-year fixed conventional loan with normal credit. New York and a few high-tax states run higher (3.5–4.5%). VA and FHA loans have additional structural costs. Run the actual numbers in your loan estimate.
What's the difference between closing costs and cash to close?
Closing costs are fees and prepaids only. Cash to close is the all-in number you wire on closing day: down payment + closing costs − seller credits − any earnest money already paid. Use the Cash to Close calculator for the wire-day figure.
Can closing costs be financed into the loan?
Sometimes. With a 'no closing cost' loan, the lender absorbs upfront fees in exchange for a higher rate. The 'cost' is paid through the rate over the loan's life. Usually only worth it if you plan to refinance or sell within 3–4 years.
Why are New York closing costs so high?
Mansion tax (1% on properties $1M+, with higher tiers above), transfer taxes, and a state-specific title insurance structure. New York City closings on a $1M+ home can run 5–7% in closing costs alone.
Should I pay points to buy down my rate?
Compute the breakeven. One point typically costs 1% of loan and saves about 0.25 percentage points of rate. On a $400K loan, that's $4,000 to save roughly $66/month — about 60-month breakeven. Worth it if you'll keep the loan 5+ years.
What's a no-closing-cost loan?
A loan where the lender pays your closing costs in exchange for a higher rate (usually +0.25 to +0.5 percentage points). The cost is real — it's embedded in the rate — but it's a useful structure if you're cash-tight at closing or planning to refinance soon.
Keep going
Related calculators.
Wire-day total
Now add it to the down payment.
Closing costs are one piece. Cash to Close shows the complete number you'll need on closing day, with seller credits accounted for.