Closing costs are the fees and prepaid bills you pay when you finalize a mortgage, on top of your down payment.
Closing Cost Calculator
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This calculator itemizes lender fees, title and government charges, prepaid interest and escrow deposits for a conventional, FHA or VA loan, so you can see roughly how much cash you’ll need on closing day.
What goes into closing costs
- Lender fees: origination or underwriting fees, any discount points you buy to lower your rate, the appraisal and the credit report.
- Title and settlement: title search and title insurance, the settlement or escrow agent’s fee and, in some states, an attorney fee.
- Government fees: recording fees and, where they apply, transfer taxes. In many areas the seller pays the transfer tax by custom or contract.
- Prepaids and escrow: the first year of homeowners insurance, a few months of property tax and insurance for your escrow account, and interest from closing day to the end of the month. These aren’t fees; they’re bills paid in advance.
How to lower your closing costs
- Compare Loan Estimates from at least three lenders. They use the same standard form, so the fees line up side by side.
- Shop for the services the Loan Estimate lists as shoppable, such as title and settlement.
- Ask the seller for a closing cost credit, especially in a slower market.
- Close near the end of the month to cut prepaid interest, though it doesn’t change your total loan cost.
- Check your state’s first-time homebuyer program; many offer grants or loans for closing costs. See our guide to first-time homebuyer programs.
Frequently asked questions
How much are closing costs on a house?
Buyers often pay about 2% to 5% of the loan amount once lender fees and prepaids are counted. On a $360,000 loan, that’s roughly $7,200 to $18,000. Your exact figure depends on your state, lender and loan type, and appears on page 2 of your Loan Estimate.
Can closing costs be added to my mortgage?
On a purchase, most closing costs must be paid in cash or covered by seller or lender credits. The FHA upfront mortgage insurance premium and the VA funding fee are the main exceptions; they’re usually added to the loan. Some lenders offer a slightly higher rate in exchange for a lender credit.
When will I know my exact closing costs?
Your lender must send a Loan Estimate within 3 business days of your application and a Closing Disclosure at least 3 business days before closing. Compare the two; some fees can’t increase at all, and others can rise only within set limits.
Related: Mortgage Calculator, Home Affordability Calculator, How to Get Pre-Approved, FHA vs. Conventional Loans.