Closing Cost Calculator
Estimate buyer closing costs item by item, and the total cash you need at closing including the down payment.
How much are closing costs?
Buyers typically pay 2% to 5% of the loan amount in closing costs, on top of the down payment. They fall into three groups:
- Lender charges: origination or underwriting fees, discount points, appraisal and credit report.
- Third-party and government fees: title search and insurance, settlement or escrow fees, recording fees and, in some places, transfer taxes.
- Prepaids: interest to the end of the month, the first year of homeowners insurance and a few months of property tax for the escrow account.
A $400,000 home with 20% down and a $320,000 loan at 6.5%: origination about $3,200, title $2,000, appraisal and settlement fees around $1,600, prepaid interest $855 and insurance and tax reserves of $2,800 bring the estimate to about $10,455 (2.6% of the price). Cash needed at closing is about $90,455 including the down payment.
How to lower closing costs
- Compare the Loan Estimates from several lenders; origination fees vary widely.
- Shop for title insurance and settlement services where your state allows it.
- Ask the seller for closing-cost credits, especially in a slower market.
- Look into state and local down payment and closing cost assistance programs.
Your lender must give you a Loan Estimate within three business days of applying and a Closing Disclosure at least three business days before closing. Use them to replace these estimates with real figures.
Frequently asked questions
How much are closing costs on a $400,000 house?
Usually $8,000 to $20,000 for the buyer, or 2%–5% of the loan, depending on the lender, state transfer taxes and prepaid items.
Can closing costs be rolled into the loan?
Sometimes. Some lenders offer no-closing-cost loans with a higher interest rate, and FHA and VA allow certain fees to be financed. Sellers can also pay part of them.
Who pays transfer tax?
It depends on local custom and the contract. In many states the seller pays; in others it is split or paid by the buyer.
Last reviewed October 2026. Results are estimates; check important decisions with a qualified professional.