Closing Cost Calculator

Buyer closing costs generally fall into a few groups: loan-related fees charged by your lender, title and government fees, prepaid expenses, and initial escrow deposits. Understanding which bucket each fee belongs to helps you see where your money is going and avoid counting the same cost twice.

A loan origination fee is what the lender charges to process your mortgage, often expressed as a percentage of the loan amount. Discount points are an optional upfront charge you can pay to reduce your interest rate — each point typically equals 1% of the loan. Whether paying points makes sense depends on how long you plan to keep the loan.

Title fees cover a title search and owner's title insurance, which protects against competing claims to the property. Recording fees are charged by local governments to record the deed and mortgage. Transfer taxes are imposed by some states and localities when ownership changes hands. These costs vary widely by location.

Prepaid expenses are costs you pay at closing for items due shortly after — most commonly a year of homeowners insurance and a portion of property taxes. They are different from closing fees, which are charges for services rendered during the transaction itself. The calculator keeps these separate so they aren't double-counted.

If your lender escrows your taxes and insurance, you'll fund an initial escrow account at closing. This reserve covers future tax and insurance bills until your regular monthly escrow contributions build up. It's cash you pay upfront, but it's held for future bills rather than spent on the transaction.

A seller credit is money the seller contributes toward your closing costs, often used as a negotiation point. A lender credit is offered by the lender, usually in exchange for a higher interest rate. Both reduce the cash you need at closing. The calculator distinguishes the two and subtracts them from your total — but credits that exceed your costs may not always come back to you as cash, so confirm with your lender.

Earnest money is a deposit you make when your offer is accepted to show you're serious. It's usually applied toward your closing costs or down payment at settlement, so it reduces the additional cash you need to bring to closing. Your cash to close is the final amount you write a check for: down payment plus closing costs, prepaids, and escrow deposits, minus credits and earnest money already paid.

This calculator uses the figures you enter as illustrative estimates. Your actual costs will depend on your lender's fee schedule, local tax rates, the title company you use, your loan program, and the terms negotiated in your purchase agreement. Always review your Loan Estimate and Closing Disclosure from your lender for the official numbers. Fees vary by location, lender, loan type, and transaction — this tool helps you budget, not predict an exact figure.