🔢 Calculator
Closing Cost Calculator
Enter the purchase price and loan amount to estimate your total closing costs as a buyer. See the breakdown of lender fees, title insurance, escrow, and prepaid costs.
The Cash You Need Beyond the Down Payment
First-time buyers are often shocked to learn that the down payment is not the only cash needed at closing. On a $400K home with 20% down, you'll need roughly $80,000 for the down payment PLUS $10,000-15,000 in closing costs — a total of $90,000-95,000 in cash. If you're putting less than 20% down, closing costs are a larger relative burden. Always build closing costs into your savings plan, and request a Loan Estimate early in the process so there are no surprises. Ask your lender to lock in a maximum closing cost number in advance.
Frequently Asked Questions
What are closing costs?
Closing costs are fees paid at the end of a real estate transaction. Buyer closing costs include loan origination fees, appraisal, title insurance, attorney fees, escrow deposits, and prepaid interest/taxes/insurance. They typically total 2-5% of the purchase price. Sellers pay realtor commissions (5-6%), transfer taxes, and their own title expenses, totaling 8-10%.
Can the seller pay my closing costs?
Yes. Seller concessions (seller credits toward buyer closing costs) are common, especially in buyer's markets. FHA allows up to 6% seller contribution, conventional allows 3-6% depending on down payment. The seller effectively raises the contract price and gives the difference back as a credit. This lets you finance your closing costs — useful when cash is tight.
How can I reduce closing costs?
Shop around for title insurance (save $500-1,500). Negotiate lender fees — origination fees and discount points are negotiable. Ask for a lender credit (higher rate in exchange for lower closing costs). Compare Loan Estimates from at least 3 lenders. Close at end of month to reduce prepaid interest. Some first-time buyer programs cover partial closing costs.
