Closing Cost Estimator

What closing costs actually cover

Closing costs are the fees to originate, verify, insure, and record your loan. They are separate from your down payment. On a $350,000 purchase, the common 2% to 5% range works out to roughly $7,000 to $17,500.

Lender fees

Origination, underwriting, and processing charges from the lender, plus any discount points you buy to lower the rate. These are the line items you have the most room to shop and compare between offers.

Third-party fees

Appraisal, credit report, title search, title insurance, survey, and attorney or settlement fees. The lender selects some of these. In many states you can shop title and settlement services yourself.

Prepaids and escrow

Not fees, but cash you bring anyway. Lenders collect the first year of homeowners insurance, prepaid interest through the end of the closing month, and a few months of taxes and insurance to fund your escrow account.

Who is allowed to pay them

Sellers can contribute toward closing costs, and the cap depends on the loan type and your down payment. Lenders can also credit costs in exchange for a slightly higher rate. Both reduce the cash you bring without reducing the cost of the loan itself.

Typical closing costs on a $350,000 home

Every line below is a real charge you will see on a Loan Estimate. Amounts vary by state, lender, and property, but this is the shape of a normal purchase file with roughly 3% in total costs.

Add the down payment and you have cash to close. On a $350,000 purchase with 10% down and 3% costs, that is $35,000 plus about $10,500, or roughly $45,500 due at the table.

How much the seller is allowed to pay

A seller credit lowers the cash you bring without lowering the price of the loan. Each program caps how much a seller can contribute.

These are published program limits and can change. Your lender confirms the cap that applies to your file.

Five ways to cut what you pay at closing

• Shop title and settlement. Section C of the Loan Estimate lists services you are allowed to shop. In many states this is several hundred dollars of difference.
• Ask for a lender credit. Taking a slightly higher rate can wipe out most lender fees. It costs more over time, so it fits buyers who are short on cash today or expect to move or refinance.
• Negotiate a seller credit. Often easier to get than a price reduction, and it goes straight to your cash to close.
• Close later in the month. Prepaid interest is charged from your closing date to month end. Closing on the 28th instead of the 3rd can save more than a thousand dollars.
• Compare Loan Estimates side by side. Request them the same day from two or three lenders so rates are comparable, then compare page 2 line by line.

Loan Estimate vs Closing Disclosure

The Loan Estimate is your quote. It arrives within three business days of applying and uses a standard format so every lender's version lines up. The Closing Disclosure is the final bill. It must reach you at least three business days before closing, and certain fees are not allowed to increase from the Loan Estimate at all, while others can move within a 10% tolerance. Compare the two documents before you sign.

Frequently asked questions

How much are closing costs?

Commonly 2% to 5% of the price, separate from the down payment.

What is cash to close?

Your down payment plus closing costs, minus any seller or lender credits.

Are closing costs included in the loan?

On a purchase they are generally paid in cash at closing rather than rolled in. VA and FHA allow limited fees to be financed, and on a refinance the costs are often added to the balance.

Can I negotiate closing costs?

Some of them. Lender fees and title or settlement services are the most negotiable. Recording fees and transfer taxes are set by the government and are not.

When do I learn the exact amount?

Your Loan Estimate arrives within three business days of applying. The Closing Disclosure, with final figures, comes at least three business days before closing.