Closing Costs Calculator

The closing costs calculator estimates the various fees and charges that buyers pay when finalizing a home purchase. These costs typically range from 2 to 5 percent of the loan amount, though the exact figure depends on your location, lender, and loan type. The calculator groups closing costs into several categories. Lender fees include the loan origination fee (typically 0.5 to 1 percent of the loan amount), application fees, underwriting fees, and credit report charges. These are the costs your lender charges to process and approve your mortgage. Title and settlement charges cover the title search, title insurance for the lender, and the settlement or closing agent fee. The title search confirms the seller has clear ownership, and lender title insurance protects the mortgage company against title defects. You may also choose to purchase an owner's title insurance policy for your own protection. Prepaid items are expenses you pay in advance at closing. These include your first year of homeowners insurance, several months of property tax escrow to establish your impound account, and prepaid interest from closing day through the end of that month. The number of months escrowed depends on when you close relative to the next tax due date. Government fees include deed recording charges and transfer taxes, which vary significantly by state and county. Some states charge a flat fee while others base the tax on the sale price. The calculator applies a national average or state-specific rate depending on your selection. Additional costs may include the home appraisal fee, survey charges, pest inspection, and any points you choose to pay to lower your interest rate. The calculator provides both an itemized list and a total estimate so you know how much cash to have ready beyond your down payment.