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✓ Editorially reviewed by Derek Giordano, Founder & Editor · BA Business Marketing

Closing Cost Calculator

Itemized Home Buyer Closing Cost Estimate by State

Last reviewed: May 2026

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Estimated Closing Costs
% of Price
Total Cash Needed
Loan Amount
Itemized Breakdown

What Is a Closing Cost Calculator?

A closing cost calculator estimates the upfront fees you'll pay when finalizing a home purchase or refinance — separate from your down payment. Closing costs typically range from 2–5% of the loan amount, meaning a $400,000 home can add $8,000–$20,000 in fees on top of your down payment.1

Typical Closing Cost Breakdown

Fee CategoryTypical RangeOn $350K LoanNegotiable?
Origination fee0.5–1.5%$1,750–$5,250Yes
Appraisal$400–$700$500No
Title insurance$500–$2,000$1,200Shop around
Home inspection$300–$500$400No
Attorney fees$500–$1,500$800Shop around
Prepaid taxes/insurance2–6 months$2,000–$4,000No
Discount points (optional)1% per point$3,500/pointBuyer choice

How to Reduce Closing Costs

Shop for title insurance — you're not required to use the lender's preferred provider. Negotiate origination fees — this is the lender's profit margin. Ask for seller concessions — 2–3% seller credits are common. Compare Loan Estimates from 3+ lenders for apples-to-apples comparison.2

Buyer vs Seller Costs

Buyers pay 2–5% of the loan amount. Sellers pay more — usually 6–10% of sale price — primarily agent commissions (5–6%). In buyer-friendly markets, sellers may cover a portion of buyer closing costs as a concession. Use our Down Payment Calculator for the full upfront picture.3

Closing Costs on Refinancing

Refinance closing costs are typically 0.5–1% lower than purchase costs (no commission or transfer tax). On a $350K refinance, expect $5,000–$10,000. The break-even calculation determines whether refinancing makes sense. Use our Refinance Calculator for detailed analysis.4

What Closing Costs Include

Closing costs encompass all fees required to complete a real estate transaction, typically totaling 2-5% of the purchase price for buyers and 6-10% for sellers (including agent commissions). Buyer costs break into several categories. Lender fees include origination charges (0.5-1% of loan amount), appraisal ($300-600), credit report ($30-50), and underwriting fees ($300-900). Title and escrow costs include title search ($200-400), title insurance ($500-3,500 depending on purchase price), escrow fees ($500-2,000), and recording fees ($50-250). Prepaid items include homeowner's insurance (first year's premium), property tax escrow (2-6 months prepaid), and prepaid interest (daily interest from closing to the end of the month). On a $400,000 home purchase, total buyer closing costs typically range from $8,000 to $20,000. Seller costs are dominated by real estate commissions (5-6% of sale price, or $20,000-24,000 on $400,000), plus transfer taxes, title fees, and prorated property taxes.

How to Reduce Closing Costs

Here's something a lot of buyers don't realize: several closing costs are negotiable. Lender origination fees vary significantly — shopping 3-5 lenders can save you $1,000-3,000 without much effort. Some lenders offer "no closing cost" loans that roll fees into a slightly higher interest rate: on a $300,000 loan, paying 6.75% instead of 6.5% to avoid $6,000 in upfront fees breaks even at approximately 3.5 years. If you plan to move within that timeframe, the higher rate costs less. Title insurance is a one-time premium, and you can shop for it independently rather than using the lender's affiliated company — savings of 10-30% are common. In many states, the buyer can choose the title company. Asking the seller to contribute to closing costs (seller concessions) is standard in buyer's markets: sellers may agree to cover 2-3% of the purchase price in closing costs rather than lowering the list price, which has the same financial effect but lets buyers preserve cash. VA loans allow sellers to pay up to 4% of the purchase price toward buyer closing costs; FHA allows up to 6%.

Closing Cost Estimates vs Final Figures

Lenders must provide a Loan Estimate (LE) within 3 business days of your mortgage application, itemizing expected closing costs. At least 3 days before closing, you receive a Closing Disclosure (CD) showing final numbers. TRID regulations limit how much certain fees can increase between the LE and CD: origination charges cannot increase at all (0% tolerance), third-party services selected by the lender can increase by up to 10% in aggregate, and services you shop for independently have no cap but should be close to estimates. If your final costs exceed estimates beyond these tolerances, the lender must reimburse the difference — a protection many borrowers don't know exists. Common surprises between estimate and closing include prorated property taxes higher than estimated (if the home's tax assessment increased), additional inspection fees requested by underwriting, and HOA transfer fees not disclosed initially. Reviewing the Closing Disclosure carefully before signing prevents costly oversights.

Closing Costs by State

State and local regulations create significant geographic variation in closing costs. Transfer taxes vary from zero (15 states have none) to over 2% of purchase price in some cities. New York City charges a combined transfer tax of 1.4-1.825% of the purchase price, plus a mansion tax of 1-3.9% on properties over $1 million. Washington DC levies a 1.1-1.45% recordation tax plus a 1.1-1.45% transfer tax. Florida charges documentary stamp tax at 0.70% of purchase price. Attorney states (where a lawyer must conduct the closing) including New York, Connecticut, Massachusetts, Georgia, and South Carolina have additional attorney fees of $800-2,500 that escrow states avoid. Property tax proration varies by custom: in some areas the seller pays through closing day; in others, taxes are split differently based on the local tax year. These variations mean that identical $400,000 purchases can cost $6,000 in Iowa or $25,000+ in New York City in closing costs alone.

Closing Costs for Refinancing

Refinancing incurs its own set of closing costs, typically 2-3% of the new loan amount. Many costs overlap with purchase closings: appraisal, title search, title insurance, origination fees, and recording fees. The key difference: no transfer tax (ownership isn't changing) and no real estate commissions. On a $250,000 refinance, expect $5,000-7,500 in closing costs. The breakeven calculation determines whether refinancing makes financial sense: divide total closing costs by monthly payment savings. If refinancing costs $6,000 and saves $200/month, breakeven is 30 months (2.5 years). If you plan to stay in the home longer than the breakeven period, refinancing saves money. "No-cost" refinancing rolls fees into the loan balance or a higher rate — useful if you might move before reaching breakeven on a traditional refinance, but more expensive over the full loan term due to paying interest on the capitalized fees or accepting the rate premium for the loan's remaining life.

What are closing costs and who pays them?
Fees from lenders, title companies, attorneys, and government agencies. Buyers pay 2–5% of loan amount; sellers pay 6–10% of sale price (primarily commissions).

What Closing Costs Include

Closing costs encompass all fees required to complete a real estate transaction, typically totaling 2-5% of the purchase price for buyers and 6-10% for sellers (including agent commissions). Buyer costs break into several categories. Lender fees include origination charges (0.5-1% of loan amount), appraisal ($300-600), credit report ($30-50), and underwriting fees ($300-900). Title and escrow costs include title search ($200-400), title insurance ($500-3,500 depending on purchase price), escrow fees ($500-2,000), and recording fees ($50-250). Prepaid items include homeowner's insurance (first year's premium), property tax escrow (2-6 months prepaid), and prepaid interest (daily interest from closing to the end of the month). On a $400,000 home purchase, total buyer closing costs typically range from $8,000 to $20,000. Seller costs are dominated by real estate commissions (5-6% of sale price, or $20,000-24,000 on $400,000), plus transfer taxes, title fees, and prorated property taxes.

How to Reduce Closing Costs

Several closing costs are negotiable or avoidable. Lender origination fees vary significantly — getting quotes from 3-5 lenders can save $1,000-3,000. Some lenders offer "no closing cost" loans that roll fees into a slightly higher interest rate: on a $300,000 loan, paying 6.75% instead of 6.5% to avoid $6,000 in upfront fees breaks even at approximately 3.5 years. If you plan to move within that timeframe, the higher rate costs less. Title insurance is a one-time premium, and you can shop for it independently rather than using the lender's affiliated company — savings of 10-30% are common. In many states, the buyer can choose the title company. Asking the seller to contribute to closing costs (seller concessions) is standard in buyer's markets: sellers may agree to cover 2-3% of the purchase price in closing costs rather than lowering the list price, which has the same financial effect but lets buyers preserve cash. VA loans allow sellers to pay up to 4% of the purchase price toward buyer closing costs; FHA allows up to 6%.

Closing Cost Estimates vs Final Figures

Lenders must provide a Loan Estimate (LE) within 3 business days of your mortgage application, itemizing expected closing costs. At least 3 days before closing, you receive a Closing Disclosure (CD) showing final numbers. TRID regulations limit how much certain fees can increase between the LE and CD: origination charges cannot increase at all (0% tolerance), third-party services selected by the lender can increase by up to 10% in aggregate, and services you shop for independently have no cap but should be close to estimates. If your final costs exceed estimates beyond these tolerances, the lender must reimburse the difference — a protection many borrowers don't know exists. Common surprises between estimate and closing include prorated property taxes higher than estimated (if the home's tax assessment increased), additional inspection fees requested by underwriting, and HOA transfer fees not disclosed initially. Reviewing the Closing Disclosure carefully before signing prevents costly oversights.

Closing Costs by State

State and local regulations create significant geographic variation in closing costs. Transfer taxes vary from zero (15 states have none) to over 2% of purchase price in some cities. New York City charges a combined transfer tax of 1.4-1.825% of the purchase price, plus a mansion tax of 1-3.9% on properties over $1 million. Washington DC levies a 1.1-1.45% recordation tax plus a 1.1-1.45% transfer tax. Florida charges documentary stamp tax at 0.70% of purchase price. Attorney states (where a lawyer must conduct the closing) including New York, Connecticut, Massachusetts, Georgia, and South Carolina have additional attorney fees of $800-2,500 that escrow states avoid. Property tax proration varies by custom: in some areas the seller pays through closing day; in others, taxes are split differently based on the local tax year. These variations mean that identical $400,000 purchases can cost $6,000 in Iowa or $25,000+ in New York City in closing costs alone.

Closing Costs for Refinancing

Refinancing incurs its own set of closing costs, typically 2-3% of the new loan amount. Many costs overlap with purchase closings: appraisal, title search, title insurance, origination fees, and recording fees. The key difference: no transfer tax (ownership isn't changing) and no real estate commissions. On a $250,000 refinance, expect $5,000-7,500 in closing costs. The breakeven calculation determines whether refinancing makes financial sense: divide total closing costs by monthly payment savings. If refinancing costs $6,000 and saves $200/month, breakeven is 30 months (2.5 years). If you plan to stay in the home longer than the breakeven period, refinancing saves money. "No-cost" refinancing rolls fees into the loan balance or a higher rate — useful if you might move before reaching breakeven on a traditional refinance, but more expensive over the full loan term due to paying interest on the capitalized fees or accepting the rate premium for the loan's remaining life.

Can I roll closing costs into my mortgage?
FHA loans allow financing costs into the loan. Conventional loans offer no-closing-cost options (higher rate instead). Rolling costs in means paying interest on them for the full loan life.

What Closing Costs Include

Closing costs encompass all fees required to complete a real estate transaction, typically totaling 2-5% of the purchase price for buyers and 6-10% for sellers (including agent commissions). Buyer costs break into several categories. Lender fees include origination charges (0.5-1% of loan amount), appraisal ($300-600), credit report ($30-50), and underwriting fees ($300-900). Title and escrow costs include title search ($200-400), title insurance ($500-3,500 depending on purchase price), escrow fees ($500-2,000), and recording fees ($50-250). Prepaid items include homeowner's insurance (first year's premium), property tax escrow (2-6 months prepaid), and prepaid interest (daily interest from closing to the end of the month). On a $400,000 home purchase, total buyer closing costs typically range from $8,000 to $20,000. Seller costs are dominated by real estate commissions (5-6% of sale price, or $20,000-24,000 on $400,000), plus transfer taxes, title fees, and prorated property taxes.

How to Reduce Closing Costs

Several closing costs are negotiable or avoidable. Lender origination fees vary significantly — getting quotes from 3-5 lenders can save $1,000-3,000. Some lenders offer "no closing cost" loans that roll fees into a slightly higher interest rate: on a $300,000 loan, paying 6.75% instead of 6.5% to avoid $6,000 in upfront fees breaks even at approximately 3.5 years. If you plan to move within that timeframe, the higher rate costs less. Title insurance is a one-time premium, and you can shop for it independently rather than using the lender's affiliated company — savings of 10-30% are common. In many states, the buyer can choose the title company. Asking the seller to contribute to closing costs (seller concessions) is standard in buyer's markets: sellers may agree to cover 2-3% of the purchase price in closing costs rather than lowering the list price, which has the same financial effect but lets buyers preserve cash. VA loans allow sellers to pay up to 4% of the purchase price toward buyer closing costs; FHA allows up to 6%.

Closing Cost Estimates vs Final Figures

Lenders must provide a Loan Estimate (LE) within 3 business days of your mortgage application, itemizing expected closing costs. At least 3 days before closing, you receive a Closing Disclosure (CD) showing final numbers. TRID regulations limit how much certain fees can increase between the LE and CD: origination charges cannot increase at all (0% tolerance), third-party services selected by the lender can increase by up to 10% in aggregate, and services you shop for independently have no cap but should be close to estimates. If your final costs exceed estimates beyond these tolerances, the lender must reimburse the difference — a protection many borrowers don't know exists. Common surprises between estimate and closing include prorated property taxes higher than estimated (if the home's tax assessment increased), additional inspection fees requested by underwriting, and HOA transfer fees not disclosed initially. Reviewing the Closing Disclosure carefully before signing prevents costly oversights.

Closing Costs by State

State and local regulations create significant geographic variation in closing costs. Transfer taxes vary from zero (15 states have none) to over 2% of purchase price in some cities. New York City charges a combined transfer tax of 1.4-1.825% of the purchase price, plus a mansion tax of 1-3.9% on properties over $1 million. Washington DC levies a 1.1-1.45% recordation tax plus a 1.1-1.45% transfer tax. Florida charges documentary stamp tax at 0.70% of purchase price. Attorney states (where a lawyer must conduct the closing) including New York, Connecticut, Massachusetts, Georgia, and South Carolina have additional attorney fees of $800-2,500 that escrow states avoid. Property tax proration varies by custom: in some areas the seller pays through closing day; in others, taxes are split differently based on the local tax year. These variations mean that identical $400,000 purchases can cost $6,000 in Iowa or $25,000+ in New York City in closing costs alone.

Closing Costs for Refinancing

Refinancing incurs its own set of closing costs, typically 2-3% of the new loan amount. Many costs overlap with purchase closings: appraisal, title search, title insurance, origination fees, and recording fees. The key difference: no transfer tax (ownership isn't changing) and no real estate commissions. On a $250,000 refinance, expect $5,000-7,500 in closing costs. The breakeven calculation determines whether refinancing makes financial sense: divide total closing costs by monthly payment savings. If refinancing costs $6,000 and saves $200/month, breakeven is 30 months (2.5 years). If you plan to stay in the home longer than the breakeven period, refinancing saves money. "No-cost" refinancing rolls fees into the loan balance or a higher rate — useful if you might move before reaching breakeven on a traditional refinance, but more expensive over the full loan term due to paying interest on the capitalized fees or accepting the rate premium for the loan's remaining life.

Are closing costs tax deductible?
Most are not. Exceptions: mortgage discount points, prepaid property taxes (up to SALT cap), and first-month mortgage interest if you itemize deductions.

What Closing Costs Include

Closing costs encompass all fees required to complete a real estate transaction, typically totaling 2-5% of the purchase price for buyers and 6-10% for sellers (including agent commissions). Buyer costs break into several categories. Lender fees include origination charges (0.5-1% of loan amount), appraisal ($300-600), credit report ($30-50), and underwriting fees ($300-900). Title and escrow costs include title search ($200-400), title insurance ($500-3,500 depending on purchase price), escrow fees ($500-2,000), and recording fees ($50-250). Prepaid items include homeowner's insurance (first year's premium), property tax escrow (2-6 months prepaid), and prepaid interest (daily interest from closing to the end of the month). On a $400,000 home purchase, total buyer closing costs typically range from $8,000 to $20,000. Seller costs are dominated by real estate commissions (5-6% of sale price, or $20,000-24,000 on $400,000), plus transfer taxes, title fees, and prorated property taxes.

How to Reduce Closing Costs

Several closing costs are negotiable or avoidable. Lender origination fees vary significantly — getting quotes from 3-5 lenders can save $1,000-3,000. Some lenders offer "no closing cost" loans that roll fees into a slightly higher interest rate: on a $300,000 loan, paying 6.75% instead of 6.5% to avoid $6,000 in upfront fees breaks even at approximately 3.5 years. If you plan to move within that timeframe, the higher rate costs less. Title insurance is a one-time premium, and you can shop for it independently rather than using the lender's affiliated company — savings of 10-30% are common. In many states, the buyer can choose the title company. Asking the seller to contribute to closing costs (seller concessions) is standard in buyer's markets: sellers may agree to cover 2-3% of the purchase price in closing costs rather than lowering the list price, which has the same financial effect but lets buyers preserve cash. VA loans allow sellers to pay up to 4% of the purchase price toward buyer closing costs; FHA allows up to 6%.

Closing Cost Estimates vs Final Figures

Lenders must provide a Loan Estimate (LE) within 3 business days of your mortgage application, itemizing expected closing costs. At least 3 days before closing, you receive a Closing Disclosure (CD) showing final numbers. TRID regulations limit how much certain fees can increase between the LE and CD: origination charges cannot increase at all (0% tolerance), third-party services selected by the lender can increase by up to 10% in aggregate, and services you shop for independently have no cap but should be close to estimates. If your final costs exceed estimates beyond these tolerances, the lender must reimburse the difference — a protection many borrowers don't know exists. Common surprises between estimate and closing include prorated property taxes higher than estimated (if the home's tax assessment increased), additional inspection fees requested by underwriting, and HOA transfer fees not disclosed initially. Reviewing the Closing Disclosure carefully before signing prevents costly oversights.

Closing Costs by State

State and local regulations create significant geographic variation in closing costs. Transfer taxes vary from zero (15 states have none) to over 2% of purchase price in some cities. New York City charges a combined transfer tax of 1.4-1.825% of the purchase price, plus a mansion tax of 1-3.9% on properties over $1 million. Washington DC levies a 1.1-1.45% recordation tax plus a 1.1-1.45% transfer tax. Florida charges documentary stamp tax at 0.70% of purchase price. Attorney states (where a lawyer must conduct the closing) including New York, Connecticut, Massachusetts, Georgia, and South Carolina have additional attorney fees of $800-2,500 that escrow states avoid. Property tax proration varies by custom: in some areas the seller pays through closing day; in others, taxes are split differently based on the local tax year. These variations mean that identical $400,000 purchases can cost $6,000 in Iowa or $25,000+ in New York City in closing costs alone.

Closing Costs for Refinancing

Refinancing incurs its own set of closing costs, typically 2-3% of the new loan amount. Many costs overlap with purchase closings: appraisal, title search, title insurance, origination fees, and recording fees. The key difference: no transfer tax (ownership isn't changing) and no real estate commissions. On a $250,000 refinance, expect $5,000-7,500 in closing costs. The breakeven calculation determines whether refinancing makes financial sense: divide total closing costs by monthly payment savings. If refinancing costs $6,000 and saves $200/month, breakeven is 30 months (2.5 years). If you plan to stay in the home longer than the breakeven period, refinancing saves money. "No-cost" refinancing rolls fees into the loan balance or a higher rate — useful if you might move before reaching breakeven on a traditional refinance, but more expensive over the full loan term due to paying interest on the capitalized fees or accepting the rate premium for the loan's remaining life.

What is the Loan Estimate vs Closing Disclosure?
The Loan Estimate shows estimated costs within 3 days of application. The Closing Disclosure shows final costs at least 3 days before closing. Compare them carefully for unexpected changes.

What Closing Costs Include

Closing costs encompass all fees required to complete a real estate transaction, typically totaling 2-5% of the purchase price for buyers and 6-10% for sellers (including agent commissions). Buyer costs break into several categories. Lender fees include origination charges (0.5-1% of loan amount), appraisal ($300-600), credit report ($30-50), and underwriting fees ($300-900). Title and escrow costs include title search ($200-400), title insurance ($500-3,500 depending on purchase price), escrow fees ($500-2,000), and recording fees ($50-250). Prepaid items include homeowner's insurance (first year's premium), property tax escrow (2-6 months prepaid), and prepaid interest (daily interest from closing to the end of the month). On a $400,000 home purchase, total buyer closing costs typically range from $8,000 to $20,000. Seller costs are dominated by real estate commissions (5-6% of sale price, or $20,000-24,000 on $400,000), plus transfer taxes, title fees, and prorated property taxes.

How to Reduce Closing Costs

Several closing costs are negotiable or avoidable. Lender origination fees vary significantly — getting quotes from 3-5 lenders can save $1,000-3,000. Some lenders offer "no closing cost" loans that roll fees into a slightly higher interest rate: on a $300,000 loan, paying 6.75% instead of 6.5% to avoid $6,000 in upfront fees breaks even at approximately 3.5 years. If you plan to move within that timeframe, the higher rate costs less. Title insurance is a one-time premium, and you can shop for it independently rather than using the lender's affiliated company — savings of 10-30% are common. In many states, the buyer can choose the title company. Asking the seller to contribute to closing costs (seller concessions) is standard in buyer's markets: sellers may agree to cover 2-3% of the purchase price in closing costs rather than lowering the list price, which has the same financial effect but lets buyers preserve cash. VA loans allow sellers to pay up to 4% of the purchase price toward buyer closing costs; FHA allows up to 6%.

Closing Cost Estimates vs Final Figures

Lenders must provide a Loan Estimate (LE) within 3 business days of your mortgage application, itemizing expected closing costs. At least 3 days before closing, you receive a Closing Disclosure (CD) showing final numbers. TRID regulations limit how much certain fees can increase between the LE and CD: origination charges cannot increase at all (0% tolerance), third-party services selected by the lender can increase by up to 10% in aggregate, and services you shop for independently have no cap but should be close to estimates. If your final costs exceed estimates beyond these tolerances, the lender must reimburse the difference — a protection many borrowers don't know exists. Common surprises between estimate and closing include prorated property taxes higher than estimated (if the home's tax assessment increased), additional inspection fees requested by underwriting, and HOA transfer fees not disclosed initially. Reviewing the Closing Disclosure carefully before signing prevents costly oversights.

Closing Costs by State

State and local regulations create significant geographic variation in closing costs. Transfer taxes vary from zero (15 states have none) to over 2% of purchase price in some cities. New York City charges a combined transfer tax of 1.4-1.825% of the purchase price, plus a mansion tax of 1-3.9% on properties over $1 million. Washington DC levies a 1.1-1.45% recordation tax plus a 1.1-1.45% transfer tax. Florida charges documentary stamp tax at 0.70% of purchase price. Attorney states (where a lawyer must conduct the closing) including New York, Connecticut, Massachusetts, Georgia, and South Carolina have additional attorney fees of $800-2,500 that escrow states avoid. Property tax proration varies by custom: in some areas the seller pays through closing day; in others, taxes are split differently based on the local tax year. These variations mean that identical $400,000 purchases can cost $6,000 in Iowa or $25,000+ in New York City in closing costs alone.

Closing Costs for Refinancing

Refinancing incurs its own set of closing costs, typically 2-3% of the new loan amount. Many costs overlap with purchase closings: appraisal, title search, title insurance, origination fees, and recording fees. The key difference: no transfer tax (ownership isn't changing) and no real estate commissions. On a $250,000 refinance, expect $5,000-7,500 in closing costs. The breakeven calculation determines whether refinancing makes financial sense: divide total closing costs by monthly payment savings. If refinancing costs $6,000 and saves $200/month, breakeven is 30 months (2.5 years). If you plan to stay in the home longer than the breakeven period, refinancing saves money. "No-cost" refinancing rolls fees into the loan balance or a higher rate — useful if you might move before reaching breakeven on a traditional refinance, but more expensive over the full loan term due to paying interest on the capitalized fees or accepting the rate premium for the loan's remaining life.

Can I negotiate closing costs?
Yes. Origination fees are most negotiable. You can shop for title insurance and attorney services. Seller concessions can cover 2–6% depending on loan type. Government fees are fixed.

How to Use This Calculator

  1. Enter the home purchase price — Input the sale price of the home.
  2. Enter the loan amount — Input the mortgage amount (purchase price minus down payment).
  3. Enter your location — Select your state or enter the property tax rate — closing costs vary significantly by location.
  4. Review the cost breakdown — The calculator shows lender fees, title fees, insurance, taxes, and total estimated closing costs.

Tips and Best Practices

Budget 2–5% of purchase price for closing costs. On a $400,000 home, expect $8,000–$20,000 in closing costs. This is in addition to your down payment.

Some costs are negotiable. Lender origination fees, title company selection, and home warranty are often negotiable. Get quotes from multiple providers and ask the seller to contribute to closing costs.

Prepaids aren't fees — they're advance payments. Prepaid items (property tax escrow, homeowner's insurance, prepaid interest) are money you'd owe anyway. They inflate closing costs but aren't wasted money.

Compare Loan Estimates side by side. Lenders must provide a standardized Loan Estimate within 3 business days of application. Compare page 2 (closing costs) across lenders — same line items make comparison easy. See our Mortgage Calculator for payment calculations.

See also: Mortgage Calculator · Down Payment · Home Affordability · Stamp Duty

📚 Sources & References
  1. [1] CFPB. "Understand loan estimates." CFPB. CFPB.gov
  2. [2] Freddie Mac. "Closing Costs." FreddieMac.com. FreddieMac.com
  3. [3] CFPB. "Closing Disclosure." CFPB. CFPB.gov
  4. [4] IRS. "Topic No. 504: Home Mortgage Points." IRS.gov. IRS.gov
Editorial Standards — Every calculator is built from peer-reviewed formulas and official data sources, editorially reviewed for accuracy, and updated regularly. Read our full methodology · About the author