Closing Cost Calculator
Estimate your total closing costs with an itemized breakdown of every fee. See how costs vary by state and loan amount.
Quick Answer
Closing costs typically range from 2% to 5% of the home purchase price. On a $400,000 home, expect to pay $8,000 to $20,000 in closing costs, depending on your state, lender fees, and prepaid items. This calculator provides a detailed, itemized estimate based on your specific inputs.
Down payment: $80,000 (20.0%)
Transfer tax and fees vary by state.
Itemized Closing Cost Breakdown
Cost Summary
- Home Purchase Price
- $400,000
- Down Payment
- $80,000
- Closing Costs
- $12,028
- Total Cash to Close
- $92,028
About This Tool
The Closing Cost Calculator provides a comprehensive, itemized estimate of the fees and expenses you will encounter when purchasing a home. Closing costs are often an overlooked part of the home buying budget, catching first-time buyers off guard. By entering your home price, loan amount, and state, this tool generates a detailed breakdown of every major closing cost category so you can plan your finances with confidence.
When you buy a home, you need more than just the down payment. Closing costs typically add 2% to 5% of the purchase price on top of your down payment, and they must be paid at the closing table. For a $400,000 home, that means an additional $8,000 to $20,000 in cash. This calculator helps you understand exactly where that money goes and how your state affects the total.
What Closing Costs Include
Closing costs fall into several major categories. Lender fees include the loan origination fee (typically 0.5% to 1% of the loan amount), appraisal fee ($300-$500), and credit report fee. Title-related fees include title insurance, which protects against ownership disputes, and the title search fee for examining public records. Government fees include recording fees paid to the county and transfer taxes that vary widely by state. Finally, prepaid items include upfront homeowners insurance, property tax reserves, prepaid mortgage interest, and escrow account deposits.
How State Laws Affect Closing Costs
Your state has a significant impact on your total closing costs. States like Delaware (4% transfer tax), Pennsylvania (2%), and New Hampshire (1.5%) have high transfer taxes that can add thousands to your bill. Meanwhile, states like Texas, Indiana, and Kansas have no state transfer tax at all. Additionally, about 20 states require a licensed attorney to be present at closing, which adds $1,000 to $1,500 in legal fees. This calculator accounts for your state's specific transfer tax rates and attorney requirements.
Tips to Reduce Closing Costs
There are several strategies to lower your closing costs. First, shop around and compare Loan Estimates from at least three lenders, as origination fees and lender charges can vary significantly. Second, negotiate seller concessions, where the seller agrees to pay a portion of your closing costs as part of the purchase agreement. Third, consider a no-closing-cost mortgage, where the lender covers your closing costs in exchange for a slightly higher interest rate. Finally, time your closing strategically: closing at the end of the month minimizes prepaid interest charges, potentially saving hundreds of dollars.
Closing Costs vs. Prepaids
It is important to understand the distinction between true closing costs and prepaid items. Closing costs are one-time transaction fees that you will never pay again, such as the origination fee, appraisal, and title insurance. Prepaids are recurring expenses that you would pay anyway, just collected upfront at closing to fund your escrow account. These include several months of property taxes, your first year of homeowners insurance, and daily mortgage interest from your closing date to the end of that month. Both categories appear on your Closing Disclosure document, but only the closing costs represent additional transaction expenses.