Closing cost planning
Estimate closing costs and cash to close
This estimator helps you understand the additional costs that may be due when purchasing a home, including lender fees, title and escrow charges, and other settlement-related expenses.
Purpose and instructions
This page helps you estimate the additional cash needed to close a home purchase. It combines your down payment with standard settlement fees so you can understand the total amount you may need at closing.
- Enter the home price you expect to buy.
- Enter your planned down payment amount.
- Review the calculated loan amount and add your fee estimates.
- Review total closing costs and cash to close, which is the amount of money needed at settlement.
Enter closing cost details
Understanding Closing Costs
Closing costs are the mandatory legal, administrative, and third-party processing fees paid when a real estate transaction closes. These expenses are distinct from your down payment and must be settled via certified wire transfer or cashier's check on closing day.
Common Closing Cost Fee Structure
Closing costs typically range from 2% to 5% of the home purchase price. They fall into four primary categories:
| Category | Associated Fees | Average Cost Range |
|---|---|---|
| Lender Origination | Application, underwriting, processing, discount points | 0.5% – 1.5% of loan amount |
| Third-Party Services | Home appraisal, property survey, credit check, title search | $1,500 – $3,500 fixed |
| Title & Legal | Title insurance (lender & buyer policies), attorney, escrow charges | 0.5% – 1.0% of purchase price |
| Prepaids & Escrow | Prepaid hazard insurance, prorated property taxes, escrow buffer | Varies by municipality/season |
Itemized Cash-to-Close Example
Consider purchasing a $350,000 home with a 10% down payment ($35,000) and a $315,000 loan balance:
- Down Payment (10%)
- $35,000
- Loan Origination & Underwriting (1% of loan amount)
- $3,150
- Home Appraisal & Credit Report
- $600
- Title Search & Lender's Title Insurance
- $1,400
- Government Recording & Transfer Tax
- $850
- Initial Escrow Funding (Taxes & Insurance)
- $2,200
- Total Estimated Closing Fees (2.34%)
- $8,200
- TOTAL CASH REQUIRED AT CLOSING
- $43,200
Frequently Asked Questions
What are seller concessions, and how do they reduce closing costs?
Seller concessions occur when the seller agrees to cover a portion of the buyer's closing costs out of their transaction proceeds. Conventional loans permit seller concessions between 3% and 9% of the purchase price for primary residences, depending on your down payment percentage (investment properties are capped at 2%).
What is the difference between a Loan Estimate and a Closing Disclosure?
A Loan Estimate (LE) is a three-page document provided by your lender within three business days of submitting a mortgage application; it outlines projected loan costs. A Closing Disclosure (CD) is the finalized five-page document provided at least three business days before closing, detailing exact itemized fees.
What are "prepaid items" in closing costs?
Prepaids are upfront payments collected at closing to cover recurring ownership costs before they are officially due. They include advance premiums for hazard insurance, prepaid mortgage interest accrued between closing day and the first day of the next month, and initial deposits to establish your escrow account.
Can I negotiate closing costs to lower my upfront cash requirement?
Some fees are negotiable. Lender fees (such as application or processing charges) can be compared across competing lenders. Third-party title charges can also be shopped around, and discount points can be removed if you do not wish to pay upfront to lower your ongoing interest rate.
Estimated closing costs
Fill out the form to estimate your settlement costs.