Closing cost estimator

Closing costs — line-item, not a rule-of-thumb

The "2–5% of price" rule-of-thumb is fine for a back-of- napkin, but it hides where the money actually goes. At closing, you'll see a Closing Disclosure (CD) with 40+ line items across five categories: lender fees, title/settlement, government fees & taxes, prepaids, and escrow reserves. This calculator breaks them out so you can spot the negotiable ones and budget for the fixed ones.

Category 1 — Lender fees (origination & services)

• Origination fee — typically 0.5–1% of the loan. The lender's compensation for underwriting the loan. Often negotiable; compare LEs (Loan Estimates) from 3+ lenders.
• Appraisal — $500–$800, paid to an independent appraiser. Fixed by the appraiser's market, not negotiable with the lender.
• Credit report — $25–$50. Fixed.
• Flood certification — $15–$30. Fixed.
• Points — optional. 1 point = 1% of loan, usually buys 0.25% off the rate. Whether to buy points depends on your expected hold period.

Category 2 — Title and settlement

• Lender's title insurance — $500–$2,500, protects the lender against title defects. Required if you have a mortgage. Varies by state and title company.
• Owner's title insurance — 0.3–0.7% of purchase price. Optional in most states but strongly recommended. Protects your equity against a future title claim.
• Settlement / escrow fee — $400–$1,200. The title company's fee for handling the closing disbursements.
• Title search and examination — often rolled into the lender's title cost.

Category 3 — Government fees and taxes

• Recording fees — $50–$300, paid to the county to record the deed and mortgage.
• Transfer tax ("doc stamps" in some states)— 0.0–2.0% of the purchase price depending on state. Delaware and Pennsylvania are among the highest. Florida charges doc stamps on both the deed (0.7%) and the note (0.35%). Many states charge 0%.
• Mortgage recording tax — NY and a few other states charge a separate tax on the mortgage itself, often 1–2% of the loan amount.

Category 4 — Prepaids

• Homeowners insurance (1 year) — typically $800–$3,500 paid at close for the first year.
• Prepaid interest — interest from the close date to the first payment date (varies 1–30 days).
• Property tax reserves — 2–6 months of property tax deposited into escrow. This is your money, held by the servicer to pay the next tax bill.

Category 5 — Other

• Inspection — $350–$700, optional but highly recommended. Pay the inspector directly, not at closing.
• HOA transfer fee — $200–$1,000 if applicable.
• Home warranty — $400–$900 optional first-year coverage.

Seller concessions and buyer credits

Sellers can pay some of your closing costs through a concession (also called a seller credit). Limits vary by loan:

• Conventional with < 10% down: 3%
• Conventional with 10–25% down: 6%
• Conventional with 25%+ down: 9%
• FHA: 6%
• VA: 4% for certain costs, unlimited for others

In slow markets, asking for a 2–3% seller concession is common and can effectively reduce your out-of-pocket closing costs to 1–2% of the price.

The cash-to-close number

At the closing table, your cash-to-close is: down payment + closing costs − earnest money already paid − any seller credits. Your lender will give you a 3-day advance Closing Disclosure with this exact number. If it's materially different from the Loan Estimate you got at application, you have the right to know why.