Closing Cost Calculator

1. Enter the Home Price. This is the agreed purchase price. It affects title insurance, which is typically based on home value, and transfer taxes in many states.
2. Enter the Loan Amount. Most closing cost fees are calculated as a percentage of the loan, not the home price. If you put 20% down on a $400,000 home, your loan amount is $320,000. Origination fees, prepaid interest, and escrow setup are all tied to the loan balance.
3. Select your State. State transfer taxes and recording fees vary dramatically. New York buyers pay some of the highest closing costs in the country, around 4% of the loan amount. States like Missouri and Idaho typically run closer to 2%.
4. Select Loan Type. FHA loans add an upfront mortgage insurance premium (MIP) of 1.75% of the loan amount, rolled into closing costs or financed into the loan. VA loans charge a funding fee of 2.15% for first-time use. Conventional loans have neither, but may require PMI if down payment is under 20%.
5. Review the breakdown and compare against the Loan Estimate your lender provides within 3 business days of application. The LE is legally required to be accurate within specific tolerances, so use it to spot discrepancies.

Closing costs are not a single fee but a collection of charges from the lender, title company, government, and third-party service providers. They fall into two main categories: lender fees and third-party fees.

Typical Closing Cost Components:

Lender Fees:
  Origination fee:   0.5% to 1.0% of loan amount
  Discount points:   1 point = 1% of loan (optional, lowers rate)
  Underwriting fee:  $400 to $900 flat

Title Fees:
  Title search:      $150 to $300
  Lender title ins:  0.4% to 0.6% of home price
  Owner title ins:   0.3% to 0.5% of home price (buyer optional)

Government Fees:
  Recording:         $50 to $250 (county-specific)
  Transfer tax:      0% to 2%+ (state/county-specific)

Prepaid Items:
  Prepaid interest:  depends on rate and closing date
  Homeowners ins:    first year premium
  Property tax:      2 to 3 months escrow upfront

FHA loan example: On a $300,000 FHA loan, the upfront MIP alone adds $5,250 (1.75%), on top of the standard 2% to 3% in other closing costs. Total out-of-pocket before moving in could easily reach $14,000 to $17,000.

Seller concessions: In many markets, buyers negotiate for sellers to cover some closing costs, up to 3% for conventional loans (6% for FHA). This reduces the cash needed at closing without changing the purchase price from the lender's perspective.