How much are closing costs?

Buyer closing costs typically range from 2-5% of the purchase price. Seller closing costs are usually 6-10% due to real estate commissions. On a $400,000 home, buyers might pay $8,000-$20,000 while sellers might pay $24,000-$40,000.

What are typical buyer closing costs?

Buyer closing costs include loan origination fees, appraisal, credit report, title insurance, escrow fees, recording fees, prepaid taxes, and insurance. Lender fees and title costs are typically the largest components.

Can closing costs be negotiated?

Yes. Buyers can negotiate seller credits, shop for title and escrow services, and compare lender fees. Some lenders offer no-closing-cost loans (with higher rates). Sellers primarily negotiate commission rates.

Closing Costs Calculator

Estimate the fees you'll pay at closing. Get an itemized breakdown for buyers or sellers based on your transaction.

🏠 Transaction Details

Home Price

Down Payment

20% of purchase price

Interest Rate

💰 Optional Costs

Discount Points

pts

1 point = 1% of loan amount

Include owner's title insurance

📍 Location Factors

Transfer Tax Rate

Varies by state/county (0-2%)

Property Tax Rate

Annual rate for prepaid calculation

Estimated Closing Costs

$12,400

3.1% of purchase price

Total Cash Needed at Closing

$92,400

Down Payment: $80,000 + Closing Costs: $12,400

Itemized Breakdown

Lender Fees $4,000

Loan Origination Fee $3,200

Appraisal $550

Credit Report $50

Discount Points $0

Title & Escrow $3,500

Title Search & Insurance (Lender's) $1,200

Owner's Title Insurance $1,500

Escrow/Settlement Fee $600

Recording Fees $200

Prepaids & Escrow Reserves $4,900

Property Tax (3 months) $1,200

Homeowner's Insurance (1 year) $1,800

Prepaid Interest $900

PMI (2 months) $0

Government Fees $2,000

Transfer Tax $2,000

Ways to Reduce Closing Costs

Shop lender fees — Origination fees vary significantly between lenders
Compare title companies — You can choose your own title/escrow company
Negotiate seller credits — Ask seller to cover some closing costs
Close at month end — Reduces prepaid interest charges
Skip owner's title — Risky but saves ~0.5% (not recommended)

Understanding Closing Costs

Buyer Closing Costs

Buyers typically pay 2-5% of the purchase price in closing costs, including:

Lender fees: Origination (0.5-1%), appraisal, credit report
Title fees: Title search, title insurance, escrow
Prepaids: Property tax, insurance, prepaid interest
Government: Recording fees, transfer taxes

Seller Closing Costs

Sellers typically pay 6-10% of the sale price, with commissions being the largest expense:

Commissions: 5-6% split between buyer's and seller's agents
Title: Owner's title policy (in some states)
Taxes: Transfer tax, prorated property tax
Payoffs: Existing mortgage balance

Who Pays What?

Closing cost responsibility varies by location and negotiation:

Always buyer: Lender fees, prepaid items
Always seller: Agent commissions
Negotiable: Title insurance, transfer taxes, escrow fees

In buyer's markets, sellers often agree to credit buyers for some costs.

Our Estimates

This calculator uses national average percentages:

Origination: 1% of loan amount
Title insurance: ~0.5% of purchase price
Escrow fees: ~$500-800
Transfer taxes: varies (0-2%)

Actual costs vary significantly by state, county, and lender.

Planning Your Home Purchase?

Use our affordability calculator to see how much home you can afford including closing costs.

Calculate Affordability

Disclaimer: This calculator provides estimates based on national averages. Actual closing costs vary significantly by state, county, lender, and transaction details. Always request a Loan Estimate from your lender for accurate costs.