Closing Costs Calculator

Estimate the closing costs on your home purchase with an itemized breakdown by category.

Before you calculate

Fixed allowances and approximate location factors are illustrative. They are not current county tax tables or a lender Loan Estimate.

Home Purchase Price

Loan Amount

Interest Rate

State

Party Type

Estimated Buyer Closing Costs

$7,986

Loan Origination Fee (1%)	$3,200
Appraisal Fee	$500
Title Insurance (0.5%)	$2,000
Escrow / Settlement Fee	$640
Recording Fees	$125
Prepaid Interest (15 days)	$921
State Transfer Tax	$600
As % of Loan	2.31%

Buyer closing costs typically run 2–5% of the loan amount. Your estimate of $7,986 is 2.50% of the loan.

Closing Cost Components

Closing costs are fees paid to finalize a real estate transaction. Buyer costs include lender fees (origination, appraisal), title/escrow fees, prepaid items (interest, insurance), and transfer taxes. Seller costs are dominated by real estate agent commissions (typically 5–6% of sale price) and may include transfer taxes.

Origination = Loan × 1% | Title Insurance = Price × 0.5% | Prepaid Interest = (Loan × Rate) / 365 × 15 days

Example Scenarios

Negotiating Seller Concessions

Buyers can ask sellers to cover part of closing costs as a concession, effectively rolling them into a higher purchase price. This is common in buyer's markets and allows lower upfront cash needed.

No-Closing-Cost Mortgage

Some lenders offer to cover closing costs in exchange for a slightly higher interest rate. This makes sense if you plan to sell or refinance within a few years before the rate premium outweighs the upfront savings.

Methodology & Assumptions

Estimates use fixed illustrative allowances, not a current survey of national averages. Actual costs vary by lender, location, and transaction. State transfer tax rates reflect approximate figures for selected states. Always get a Loan Estimate (LE) from your lender for accurate figures.

Sources & calculation notes

Maintained by MoneyCalc. Results are estimates based on the inputs and assumptions shown, not personalized financial advice or a lender quote. Default rates are examples unless a specific tax year or official table is identified.

References explain the underlying concepts or rules. They do not endorse or independently certify this implementation.

CFPB: understanding a Loan Estimate

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