Closing Cost Calculator
Estimate your out-of-pocket expenses when finalizing a real estate transaction. Switch between Buyer and Seller views to see a detailed, itemized breakdown of lender fees, title insurance, closing costs, and prepayments.
Quick Answer: How much are closing costs?
On average, home buyers pay between 2% and 6% of their loan amount in closing costs (covering origination, title, and escrow fees). Home sellers typically pay between 6% and 10% of the home's sale price (which largely consists of the 5-6% real estate agent commissions). Use the calculator below to get a precise estimate based on your home's value.
$350,000
Estimated Closing Costs
$9,125
2.61% of property price (3.26% of loan)
Cost Breakdown
Itemized Fees
Lender Fees
- Loan Origination Fee$2,800
Third-Party Fees
- Appraisal Fee$500
- Title Search$200
- Lender's Title Insurance$1,750
- Home Inspection$400
Prepaid Fees
- Prepaid Property Taxes (6mo)$2,100
- Prepaid Home Insurance (1yr)$1,225
Government Fees
- Government Recording Fees$150
Important Caveat
Closing costs vary wildly by state, county, and individual lender. These figures are industry-standard estimates designed for general budgeting. For an exact breakdown, buyers should review the Loan Estimate (LE) provided by their lender within 3 days of applying for a mortgage, and the official Closing Disclosure (CD) prior to closing.
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Breaking Down the Fees
"Closing Costs" is an umbrella term that encompasses dozens of individual line-item fees. Because the list is so long, the government requires lenders to group these fees into specific categories on your official Loan Estimate. Here is what those categories actually mean:
Lender Expenes
These are fees charged directly by the bank to create your loan. This includes the Origination Fee (usually ~1% of the loan), underwriting fees, and "Discount Points" (where you pay cash upfront to permanently lower your interest rate).
Third-Party Services
Services required by the lender, but performed by external companies. The biggest ones are the Appraisal Fee (to ensure the home is worth what you are paying), and Title Insurance (to guarantee there are no secret liens or claims against the property).
Prepaids / Escrow
These aren't "fees," but rather your own money put into a forced savings account (an Escrow account). Lenders usually require you to deposit 6-12 months of property taxes and homeowners insurance upfront so they know those bills will be paid.
Government Fees
State, county, and city governments take their cut when real estate changes hands. These are generally fixed Transfer Taxes and Recording Fees required to legally file the new deed at the local courthouse.
How to Save Money on Closing Costs
- Shop Around: While you cannot change property taxes or government fees, Lender fees vary wildly between banks. Getting quotes from 3 different lenders can save you thousands.
- Ask the Seller for Concessions: In a "Buyer's Market," you can negotiate to have the seller pay a portion of your closing costs to seal the deal.
- Close at the End of the Month: When you buy a house, you owe "prepaid interest" for every day remaining in the month. Closing on the 28th of the month is cheaper out-of-pocket than closing on the 3rd.
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Frequently Asked Questions
How much are closing costs usually?
For home buyers, closing costs typically range from 2% to 6% of the total loan amount. For home sellers, closing costs are generally higher—ranging from 6% to 10% of the sale price—primarily because the seller customarily pays the real estate agent commissions for both sides of the transaction.
What is included in buyer closing costs?
Buyer closing costs usually include lender fees (origination fee, application fee, points), third-party fees (appraisal, home inspection, title search, lender's title insurance), prepaid items (property taxes, homeowners insurance escrow), and government recording fees.
What is included in seller closing costs?
Seller closing costs consist mostly of real estate agent commissions (usually 5-6% of the sale price). They also include state or local transfer taxes, owner's title insurance (in many states), and escrow or settlement fees.
Can closing costs be rolled into the loan?
Sometimes. This depends entirely on the type of loan you are getting (FHA, VA, Conventional) and your lender. Rolling closing costs into the loan means you pay less upfront out-of-pocket, but you will pay interest on those costs over the life of the mortgage, making them significantly more expensive in the long run.
How do I know exactly what I am paying for?
By law, your lender must provide you with a Loan Estimate (LE) within three business days of applying for a mortgage. This document provides a highly accurate, itemized breakdown of your expected closing costs. At least three days before closing, you will receive a Closing Disclosure (CD) which details the final, exact charges.