Closing Cost Calculator (Mortgage)

CLOSING COSTS FINANCE HOME BUYING MORTGAGE
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Closing cost calculator. Itemized estimate of lender fees, third-party fees, title + recording, prepaid escrow for US mortgage closings. Typical total 2-5% of home price.

RT-FIN-239 · Finance & Money
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Closing Cost Calculator

purchase price
price − down payment
section A of your Loan Estimate
lender's + owner's policies
section E; set by state and county
for prepaid interest calc
extra rate buy-down
2-12 typical
for escrow funding
for escrow funding
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How to use the closing cost calculator

Enter home price + loan amount

The purchase price and the amount you will borrow. Lender charges scale with the loan; title insurance and transfer or recording taxes scale with the price.

Enter the three rates that vary most

The origination charge (section A of a Loan Estimate), title insurance and any transfer or recording taxes (section E). The defaults, 1%, 0.5% and 0%, are only starting points. Transfer taxes in particular depend on the state and county, and some places charge none.

Enter mortgage rate + points

The rate sets the prepaid interest from the closing date to the end of the month (15 days assumed). Discount points cost 1% of the loan each and buy a lower rate; see the mortgage points calculator for whether they pay off.

Enter property tax rate + insurance + escrow months

Lenders often ask you to fund an escrow account at closing with a few months of property tax and insurance. Enter the number of months your lender asks for.

Read the total, then replace the placeholders

Lines marked placeholder are round illustrative figures, not quotes. Your lender must give you a Loan Estimate within three business days of your application; type its figures in for a real total, and remember that cash to close is the down payment plus these costs.

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Closing costs — the hidden 2-5% of your home purchase

Closing costs are the fees and prepaid items paid when a purchase completes, on top of the down payment. In the US they are set out on two standard forms. The lender must give you a Loan Estimate within three business days of receiving your application, and a Closing Disclosure at least three business days before you close, so you can compare the final terms with the estimate. This calculator follows the same grouping, so its lines can be checked against those forms.

The sections of a Loan Estimate

The CFPB describes the closing cost details in lettered sections. A is origination charges, the lender's own fees. B is services you cannot shop for, and C services you can shop for, such as title services. E is taxes and other government fees, F prepaids, G the initial escrow payment and H everything else. The CFPB advises comparing sections A, B and C across Loan Estimates for the same kind of loan from different lenders, because those are the costs that differ between offers.

A closing-cost estimate is only as good as its inputs. The Loan Estimate is where the real figures are, and it arrives within three business days of applying.

What the placeholders stand for

Three inputs drive most of the variation: the origination charge as a share of the loan, title insurance and transfer or recording taxes as shares of the price. Transfer taxes in particular range from nothing to a noticeable share of the price depending on the state and county. The remaining flat fees (application, underwriting, appraisal, inspection, credit report, attorney, survey, title search and recording) are round placeholders marked as such. An earlier version of this page picked them, and a transfer-tax rate, from a "state fee level" whose figures nobody could source, so they are now plainly labelled instead.

Seller concessions and other ways the total moves

A seller can agree to pay some of your costs. Fannie Mae's Selling Guide (B3-4.1-02, May 2025) caps these interested-party contributions for a principal residence or second home at 3% of the lower of price and appraised value above 90% loan-to-value, 6% between 75.01% and 90%, and 9% at 75% or less, and at 2% for an investment property. Lender credits work the other way from points: a higher rate in exchange for the lender paying some costs. Outside the US the costs are different in kind. In Singapore, for example, buyers pay stamp duty set by IRAS, which depends on the price and, for additional duty, on residency and how many properties they own, so check IRAS's current rates.

Loan Estimate in 3 business days, Closing Disclosure 3 days before, seller credits capped at 3–9%

01

The lender must give you a Loan Estimate within three business days of receiving your application (CFPB).

02

The Closing Disclosure must reach you at least three business days before closing.

03

Loan Estimate sections A, B and C are the ones the CFPB says to compare across lenders.

04

Section C lists services you can shop for, such as title services.

05

Section E holds taxes and other government fees, including transfer and recording taxes.

06

Fannie Mae caps seller contributions at 3% above 90% LTV, 6% at 75.01–90% and 9% at 75% or less.

07

For an investment property Fannie Mae caps seller contributions at 2% at any LTV.

08

The caps are measured on the lower of price and appraised value, not the loan amount.

09

Prepaid interest covers the days from closing to the end of the month: loan × rate ÷ 365 × days.

10

Escrow funding at closing is months of property tax and insurance paid into the lender's account in advance.

Frequently asked questions

  • Usually not directly on a purchase, but there are two common routes. A lender credit pays some costs in exchange for a higher rate. A seller concession has the seller pay some costs, within the limits the loan programme sets; Fannie Mae caps them at 3%, 6% or 9% of the lower of price and appraised value depending on loan-to-value, for a home you will live in.

  • Some are. Lender charges differ between lenders, which is why the CFPB suggests comparing Loan Estimates for the same kind of loan. Services in section C can be shopped for. Government taxes and recording fees in section E are set by law. Seller concessions and lender credits can also reduce what you pay at closing.

  • It is a one-time premium that covers losses from defects in the title, such as an unknown lien or a disputed boundary, and its price reflects the search work behind it as well as the risk. It is often quoted as a share of the price or loan, which is why this calculator takes it as a percentage. Because title services are usually in section C of the Loan Estimate, you can shop for them.

  • Lender's policy: required by every mortgage lender. Protects the bank from title-defect losses up to the loan amount. As you pay down the loan, the protection effectively shrinks. Owner's policy: optional but recommended. Protects YOU from title defects for the full purchase price for as long as you own. Premium is paid once at closing. Skipping the owner's policy is penny-wise / pound-foolish — title defects are rare but can be financially catastrophic.

  • No. Fannie Mae's Selling Guide (B3-4.1-02, May 2025) sets the cap by loan-to-value for a principal residence or second home: 3% above 90%, 6% from 75.01% to 90%, and 9% at 75% or less, measured on the lower of price and appraised value. For an investment property the cap is 2%. Government-backed loans set their own limits.

  • It no longer guesses by state. Earlier versions offered a low, average or high "state fee level" with figures nobody could source. Enter the transfer or recording tax rate that applies where you are buying, from the county, the listing agent or your Loan Estimate; it can be zero or a meaningful share of the price.

  • Usually, yes: title services normally appear in section C of the Loan Estimate, services you can shop for, and the lender gives you a list of providers. Get quotes for the same coverage and compare them with the figure on your Loan Estimate.

  • It is exact arithmetic on approximate inputs. The three rates and the prepaid items come from you; the flat fees are labelled placeholders. For a real figure, use your Loan Estimate: replace each placeholder with its line, and you have the same total the lender is working from.

  • No. Home price, loan and every rate you enter stay in your browser. Closing cost computation runs entirely client-side. Open DevTools → Network when you click Estimate and you'll see zero outbound requests.

  • CFPB Know Before You Owe (consumerfinance.gov/owning-a-home/) — comprehensive plain-English guide. TRID rule (12 CFR Part 1026) — Truth in Lending Act Real Estate Settlement Procedures Act integrated disclosure rules. HUD Handbook 4000.1 for FHA-specific guidance. Your individual Loan Estimate + Closing Disclosure are the authoritative documents for your specific transaction.

Method & sources

How it computes

Lender = loan x origination% + loan x points% + flat fees; title = price x title% + flat; transfer/recording = price x rate; prepaid interest = loan x rate / 365 x 15 days; escrow = (price x tax% + insurance) / 12 x months. The three rates are inputs; flat fees are labelled placeholders. RecaProperty.closingCosts, tested.

What this tool implements

  • The page chose all fees and a transfer-tax rate from a 'state fee level' of Low (TX, FL, no transfer tax), Average or High (NY, NJ, IL, CA) with figures nobody could source; Florida does tax deeds. Replaced by inputs for origination, title and transfer/recording rates, with every flat fee marked as a placeholder.
  • CFPB: Loan Estimate within three business days of application, Closing Disclosure at least three business days before closing, sections A-H, compare A-C across lenders. The page said the total 'can't deviate >10% from the Loan Estimate', which is not the rule. Fannie Mae IPC caps 3/6/9% by LTV for a principal residence or second home, 2% investment, on the lower of price and appraisal.
  • Removed as unsourced: 'typically 2-5%', state averages, title premium ranges, Singapore BSD 1-4% (IRAS could not be read to confirm current rates), Malaysia and Hong Kong duties and refinance ratios.

Sources

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