Mortgage closing costs calculator

Itemised estimate

What each line actually pays for

Lender fees (0.5%–1.5% of the loan)

Origination, underwriting, processing and credit-report charges. These appear in section A of your Loan Estimate and are the most negotiable part of the bill — the fastest way to cut them is to collect Loan Estimates from three lenders on the same day and ask each to match the lowest section A.

Discount points (1% of the loan per point)

Prepaid interest that buys a lower rate, usually about 0.25% per point. Divide the point cost by the monthly payment saving to get the break-even month; if you expect to sell or refinance before then, skip the points.

Title insurance and settlement (0.3%–0.8% of price)

The lender's policy protects the lender; the optional owner's policy protects you. Rates are regulated in some states and fully shoppable in others, so ask whether a reissue rate applies when the seller bought recently.

Government recording and transfer taxes

Set by your state, county and sometimes city. They range from near zero in states with no transfer tax to well over 1% in parts of the Northeast. These are not negotiable, though who pays them is sometimes customary rather than legal.

Prepaids and escrow funding

Not a fee — money you would owe anyway, paid early. Expect twelve months of homeowners insurance up front, two to six months of property tax into the escrow account, and interest from the closing date to the end of that month. Closing late in the month reduces prepaid interest.

How to reduce cash to close

• Ask for a seller credit during negotiation. Purchase contracts commonly allow 3%–6% of the price in seller-paid costs depending on loan type and down payment.
• Take a lender credit in exchange for a higher rate when you plan to move or refinance within a few years — the reverse of buying points.
• Shop title and settlement separately. Services in section C of the Loan Estimate can legally be sourced from your own provider.
• Check state and local first-time buyer assistance programmes, which frequently cover closing costs rather than the down payment.
• Compare the whole picture, not one number: use the refinance break-even calculator when the costs are being financed, and the rent vs buy calculator to see how upfront costs affect your break-even horizon.

Common questions

How much are closing costs on a house?

For most US purchases, buyer closing costs land between 2% and 5% of the purchase price, plus prepaid escrow items such as the first year of homeowners insurance and several months of property tax. On a $450,000 home that is roughly $9,000 to $22,500 before prepaids.

Can closing costs be rolled into the loan?

Sometimes. On a refinance, lenders commonly let you finance costs into the balance. On a purchase, you usually cannot finance them directly, but you can ask for a seller credit or take a lender credit in exchange for a slightly higher interest rate.

What is a lender credit?

The lender pays part of your closing costs and charges a higher rate to recover it. It lowers cash to close but raises the monthly payment, so it is worth comparing the break-even against how long you plan to keep the loan.

Are discount points worth paying?

One point costs 1% of the loan amount and typically buys about 0.25% off the rate. Points pay off only if you keep the loan past the break-even month, which is the point cost divided by the monthly payment saving.

Can I download the closing cost breakdown?

Yes. Every estimate can be exported as a CSV spreadsheet that opens in Excel, Numbers or Google Sheets with the amounts already stored as numbers, or as a JSON file if you want to feed the itemised fees, escrow prepaids, prepaid interest and credits into another tool. Both files include the inputs used and the totals, so you can line them up against your Loan Estimate.

Which closing costs can I negotiate?

Lender fees (origination, underwriting, application), title insurance and settlement services, and the choice of some third-party providers. Government recording fees and transfer taxes are fixed by your state and county.